President Donald Trump announced on Thursday that he would impose tariffs on October 1. The imposition of about 100 percent tariffs on pharmaceutical drugs, 50 percent on kitchen cabinets and bathroom vanities, 30 percent on upholstered furniture, and 25 percent on heavy trucks.
His social media posts indicate that President Trump was committed to tariffs beyond the structures of trade and importation taxes that were announced in August, which is a sign that the president is confident that taxes will assist in both reducing the budget deficit of the government and boosting domestic production.
However, the extra tariffs are expected to only deepen inflation, which is already high, and decelerate economic growth, with employers who were becoming accustomed to the previous tariffs imposed by Trump facing even more uncertainty.
In a post on Truth Social, Trump stated that pharmaceutical tariffs would not be imposed on the companies that are constructing manufacturing facilities in the United States, which he described as either “breaking ground” or being “under construction.”
The tariffs were ambiguous regarding the application to the firms that already have plants in the U.S.
According to the Census Bureau, America imported pharmaceutical and medicinal products to the tune of close to $233 billion in 2024. Doubling of prices of some medicines may cause a ripple effect on the voters because the health care costs, Medicare, and Medicaid costs might rise.
Trump claimed that foreign furniture and cabinetry manufacturers were pouring into the United States with their goods and that tariffs were needed due to “for National Security and other reasons.”
The additional tariffs on cabinetry would only add further to the prices of the homebuilders who are already finding it expensive to purchase a house, at a time when a good number of potential home buyers are being literally shut out of the market due to the housing crunch and the high mortgage rates.
Trump remarked that domestic manufacturers are being victimized by foreign-made heavy trucks and components.
Trump penned on his social media that “Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions.”
Trump has always held the position that tariffs are the solution to requiring businesses to invest more in manufacturing plants in the US. He has disregarded the fears that the importers would merely transfer a large part of the price of the taxes to consumers and businesses as an increase in prices.
He still proves that the U.S. economy is no longer facing a challenge as far as inflation is concerned, even when it is demonstrated otherwise. The consumer price index rose 2.9 percent in the past 12 months compared to a rate of 2.3 percent annually in April, when Trump initially imposed a comprehensive array of import taxes.
Neither is there any indication that the tariffs are generating factory employment or an increase in the building of manufacturing facilities. The Bureau of Labor Statistics also indicated that since April, manufacturers have reduced 42,000 jobs and builders have reduced 8,000 jobs.
Trump stated to the reporters that “There’s no inflation, we’re having unbelievable success.”
