On Friday, President Trump announced the introduction of punishing tariffs against countries at different rates. He claimed that a 100% tariff will be imposed on imported drugs, 50% on kitchen cabinets, and 25% on heavy-duty trucks. In a post on Truth Social, he said that from 1st October 100% tariff will be imposed on pharmaceutical companies that have manufacturing plants outside the US.
He also stated that tariffs on kitchen cabinets and upholstered furniture will be imposed after a week, as the new tariffs will come into effect from October 1. The tariffs on kitchen and other furniture are being justified as a measure to prevent the overflooding of imports in the US market. On tariffs imposed on heavy-duty trucks, he stated that it was to support domestic companies like Peterbilt and Kenworth, and prevent unfair competition from outside.
US-based Pharmaceutical Research and Manufacturers of America opposed the new tariffs, saying that over 53% of ingredients used in the pharmaceutical sector were made in the US this year, while the rest came from other countries, including European countries and US allies. The US Chamber of Commerce also stated that the new tariff on heavy-duty trucks is harmful for the economy, as the top importers are US allies, including Mexico, Canada, Japan, Germany, and Finland, which do not threaten US security.
Donald Trump is known for his aggressive tariff policies, as he has imposed a hefty tariff on India and China, alleging funding of the Russia-Ukraine war. The new round of tariffs seems to be out of place since it targets US allies and may significantly hamper the domestic market, as per experts.
