Donald Trump News / Trump drops new tariff bomb, now imposing 100% import duty on medicines, furniture and trucks too

Donald Trump News: US President Donald Trump announced on Thursday that he will impose heavy import tariffs on several key imported products, effective October 1, 2025. Under this new policy, a 100% tariff will be imposed on branded or patented pharmaceutical drugs, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks. Posting on his social media platform, "Truth Social," Trump stated that this move is being taken to encourage domestic manufacturing and reduce the government budget deficit. He emphasized, "This tariff-based trade policy remains an integral part of our agenda."

Trump's announcement is an extension of his previous trade reforms, which included extensive import taxes introduced in August. The president claimed that foreign manufacturers are "flooding" the US market with cheap products, impacting local industries. He justified these tariffs by calling the furniture and cabinetry sector a "national security threat." Similarly, by imposing tariffs on imports of heavy trucks, he claimed to protect American companies like Peterbilt, Kenworth, Freightliner, and Mack Trucks from "foreign interference."

Will these tariffs further fuel inflation?

While Trump claims that there is "no inflation" in the US economy and that "we are achieving tremendous success," economic experts and data suggest otherwise. Federal Reserve Chairman Jerome Powell warned in a recent press conference that rising commodity prices are directly contributing to inflation. He stated, "Most or possibly all of this year's inflation increase is linked to these increased costs, with import tariffs playing a key role."

According to the Consumer Price Index (CPI), inflation over the past 12 months was 2.9%, up from 2.3% in April – the month when Trump first announced large-scale import tariffs. Experts believe that these new tariffs will place additional burdens on consumers, potentially slowing economic growth. The US Chamber of Commerce has also expressed concern that these tariffs will increase uncertainty for businesses, especially since existing agreements with global trade partners such as Canada, Mexico, and Japan could impact tariff limits.

100% Tariffs on the Pharmaceutical Industry: Fears of a Surge in Healthcare Expenses

Trump has promised to exempt pharmaceutical companies from setting up production facilities in the US. He stated, "If a company is building a manufacturing plant in the US, the 100% tariff will not apply." However, it is unclear whether companies already operating factories in the US will receive this benefit. According to US Census Bureau data, the US imported approximately $233 billion worth of medicines and medical products in 2024. If the tariffs are implemented, the prices of many drugs could double, increasing financial pressure on Medicare, Medicaid, and ordinary Americans. Health experts say this move could impact the post-pandemic recovery, when drug prices are already a major issue.

Additional Pressure on the Furniture and Housing Crisis

These tariffs could prove to be a setback for homebuyers in the furniture sector. Trump stated that foreign products are "flooding" the American market, making the 50% tariff on kitchen cabinets and bathroom vanities and the 30% tariff on upholstered furniture necessary. However, the US is already facing a severe housing crisis – housing shortages and high mortgage rates are plaguing millions of families. These tariffs could increase construction costs by 20-30%, further pushing up the prices of new homes. Real estate experts predict this policy will further complicate the dreams of the middle class.

25% Tariff on Heavy Trucks: Protection for Domestic Companies or Trade War?

Trump's focus on the trucking industry is clear. He stated that foreign manufacturers are "hurting" American companies, so imposing a 25% tariff will provide relief to local producers. However, critics say this will make the logistics sector more expensive, as most imports come from allied countries. Furthermore, Bureau of Labor Statistics data shows that the manufacturing sector has lost 42,000 jobs since April, while the construction sector has seen a reduction of 8,000. Contrary to Trump's claims, there is no concrete evidence of job creation from the tariffs.

Finding a Balance

Trump's tariff strategy embodies his "America First" philosophy, which promises to strengthen domestic industries. But data on rising inflation, job losses, and consumer burdens warn that these measures could create long-term challenges despite short-term benefits. Economists recommend making the policy more targeted so as not to impact global partnerships. As October 1st approaches, it will be interesting to see the impact on the US market – will this truly lead to a "great success," or will it usher in a new round of inflation?