WASHINGTON, Sept 26: In a major trade move, President Donald Trump announced on Thursday that the United States will impose 100% import taxes on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks starting October 1.
US President Donald Trump has announced a fresh wave of import tariffs effective from October 1.
Trump, posting on Truth Social, said the tariffs were necessary for “National Security and other reasons,” and argued they would help boost domestic manufacturing and reduce the budget deficit. The new measures follow the trade frameworks and import taxes launched in August, underscoring Trump’s long-standing commitment to tariffs as an economic strategy.
Under the Trade Expansion Act of 1962, the administration launched Section 232 investigations earlier this year into the national security impacts of pharmaceutical and truck imports. The tariffs, however, have sparked concern about their potential effect on inflation and consumer prices.
“We have begun to see goods prices showing through into higher inflation,” warned Federal Reserve Chair Jerome Powell recently, noting that rising import costs could further push up consumer prices and slow hiring. Despite this, Trump has continued to pressure the Fed to cut interest rates more aggressively, arguing that inflation is no longer a concern.
According to the Census Bureau, the US imported nearly $233 billion worth of pharmaceutical and medicinal products in 2024. The 100% tariff could significantly raise medicine prices, potentially impacting Medicare and Medicaid costs and consumer health expenses.
Trump clarified that pharmaceutical companies currently building manufacturing plants in the US would be exempt from the new tariffs, provided their projects are “breaking ground” or “under construction.”
Business groups have expressed alarm. Pascal Chan of the Canadian Chamber of Commerce warned that the tariffs could lead to “immediate price hikes, strained insurance systems, hospital shortages, and the real risk of patients rationing or foregoing essential medicines.”
Meanwhile, housing industry analysts said that tariffs on cabinetry and furniture could increase construction costs at a time when homebuyers are already struggling with high prices and mortgage rates. Trump argued that the measures will protect domestic truck and furniture makers like Peterbilt, Kenworth, Freightliner, and Mack Trucks from foreign competition.
The tariffs add a new layer of uncertainty to the US economy, which is facing mixed signals: a solid stock market but slowing job growth and persistent inflation. The Supreme Court is set to hear a case in November that will decide whether Trump’s earlier emergency tariffs exceeded presidential authority.
📲 Follow us on WhatsAppSource: AP
Labels: International, US Economy, Donald Trump, Trade Policy, Import Tariffs
Tags: #DonaldTrump #USTariffs #PharmaceuticalImports #KitchenCabinets #TradePolicy #Inflation
Disclaimer: This news report is based on inputs from Associated Press (AP) and verified public sources. Jammu News Portal strives for factual and authentic reporting, though we do not take responsibility for any inadvertent errors. Readers are encouraged to verify official communications for complete details.