U.S. President Donald Trump on Thursday unveiled a fresh round of tariffs, announcing steep import taxes on a wide range of products beginning October 1. The new measures include a 100% tariff on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
The announcement, made through a series of posts on his social media platform Truth Social, underscores Trump’s unwavering commitment to tariffs as a cornerstone of his economic strategy. He has argued that such measures will help shrink the federal deficit and push companies to expand manufacturing in the United States.
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Tariffs Raise Inflation Concerns
While Trump continues to frame tariffs as a tool for economic growth, critics warn the new taxes could fuel inflation and slow down the economy. Businesses are still adapting to the previous round of tariffs launched in August, and many fear the added costs will once again ripple through supply chains.
Trump emphasised that pharmaceutical tariffs would not apply to companies currently building manufacturing plants in the U.S., either already under construction or preparing to break ground. However, it remains unclear how these rules would impact firms that already operate facilities in the country.
In 2024 alone, the U.S. imported nearly $233 billion worth of pharmaceutical and medicinal products, according to the Census Bureau. Doubling import costs for certain medicines could place additional strain on households while driving up expenses for Medicare and Medicaid.
Furniture And Housing Market Pressures
Trump also accused foreign manufacturers of ‘flooding the U.S. market’ with inexpensive cabinetry and furniture, arguing that tariffs are necessary for ‘National Security and other reasons.’
But higher import taxes on cabinets and vanities could further squeeze the housing market, where buyers are already struggling with high mortgage rates and limited supply. For homebuilders, rising material costs could make construction even more expensive, worsening affordability challenges.
Protecting U.S. Truck Makers
In his statement, Trump defended the 25% tariff on heavy trucks, saying it would shield American companies from foreign competition.
“Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” he posted.
Trump has consistently argued that tariffs will encourage companies to invest in U.S.-based factories, brushing off warnings that businesses and consumers will ultimately bear the brunt through higher prices.
Inflation Debate And Jobs Data
Despite Trump’s claim that “there’s no inflation,” government data paints a different picture. The consumer price index rose 2.9% over the past year, compared with 2.3% in April when Trump first rolled out a broad set of tariffs.
At the same time, there has been no clear evidence that tariffs are generating factory jobs or boosting construction. Since April, the Bureau of Labor Statistics reports that manufacturers have cut 42,000 jobs, while construction firms have shed 8,000 positions.
Even so, Trump insists his strategy is working. “We’re having unbelievable success,” he told reporters on Thursday.
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