Washington – In a bold new move, former President Donald Trump announced plans to impose steep new import taxes, with 100% tariffs on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks, all set to begin October 1.
Posting on his social media platform Truth Social, Trump doubled down on his belief that tariffs are key to reviving American manufacturing and shrinking the federal budget deficit. While lacking any formal legal explanation, Trump justified the move by invoking “National Security and other reasons,” especially regarding furniture and cabinetry.
His announcement marks a continuation of his aggressive trade strategy that began during his presidency — but this time, with a sharper edge and a tighter timeline.
But as Wall Street holds steady, the wider economic outlook for jobs and inflation is starting to wobble. Experts warn these new import taxes could mean higher prices for consumers and reduced hiring — pressures that are already beginning to surface in economic data.
Federal Reserve Chair Jerome Powell recently cautioned that inflation is being fueled by rising goods prices, saying they account for “most or all” of this year’s increase in inflation. Meanwhile, Trump insists inflation is no longer a problem and has called for Powell’s resignation, urging the Fed to cut interest rates faster.
Notably, Trump said pharmaceutical companies won’t face the 100% tariff if they are actively building manufacturing facilities on U.S. soil — but it’s unclear how this would apply to companies that already have plants here.
In 2024 alone, the U.S. imported $233 billion worth of pharmaceutical and medicinal products. The sudden cost surge for life-saving medicines may deeply impact Medicare, Medicaid, and patients’ wallets alike.
Health policy experts are raising red flags. Pascal Chan, VP at the Canadian Chamber of Commerce, warned that Americans may face “immediate price hikes, strained insurance systems, hospital shortages, and real risks of patients rationing or skipping essential medicines.”
Homebuilders, too, may feel the pinch. The 50% tariff on cabinetry could hit hard at a time when many Americans already feel priced out of homeownership due to housing shortages and high mortgage rates.
Despite this, Trump maintains that foreign-made trucks and truck parts are harming domestic manufacturers. “Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected,” he posted.
Trump continues to reject the idea that these tariffs will raise prices for consumers. However, since April, U.S. manufacturers have cut 42,000 jobs, and builders have shed 8,000, according to the Bureau of Labor Statistics — suggesting that tariffs haven’t yet delivered the domestic job growth Trump promised.
And in a rare admission, Trump acknowledged his tariffs on China hurt American soybean farmers in the past. He pledged to redirect new tariff revenue to farmers, echoing similar actions during his first term.
