President Trump said he will put import taxes of 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks starting on Oct. 1.
President Donald Trump said Thursday that he will put import taxes of 100% on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks starting on Oct. 1.
The posts on his social media site showed that Trump’s devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president’s confidence that taxes will help to reduce the government’s budget deficit while increasing domestic manufacturing.
While Trump did not provide a legal justification for the tariffs, he appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed „for National Security and other reasons.“
Under the Trade Expansion Act of 1962, the administration launched a Section 232 investigation in April about the impacts on national security from pharmaceutical drug and truck imports. The Commerce Department launched a 232 investigation into timber and lumber in March, though it’s unclear whether the furniture tariffs stem from that.
The tariffs are another dose of uncertainty for the U.S. economy with a solid stock market but a weakening outlook for jobs and elevated inflation. These new taxes on imports could pass through to consumers in the form of higher prices and dampen hiring, a process that economic data suggests is already underway.
„We have begun to see goods prices showing through into higher inflation“, Federal Reserve Chair Jerome Powell warned in a recent news conference, adding that higher costs for goods account for „most“ or potentially „all“ of the increase in inflation levels this year.
The president has pressured Powell to resign, arguing that the Fed should cut its benchmark interest rates more aggressively because inflation is no longer a concern.
