Trump Announces New Tariffs, Starting October 1
U.S. President Donald Trump announced on Thursday that he will impose new tariffs starting October 1, including a 100% tariff on pharmaceutical drugs. Additional tariffs will affect kitchen cabinets and bathroom vanities at 50%, upholstered furniture at 30%, and heavy trucks at 25%, reports 24brussels.
Manufacturing plants currently “under construction” or “being shut down” in the U.S. will not be impacted by these new tariffs. However, experts caution that the strategy may have unintended consequences, including increased inflation and slowed economic growth, as businesses continue to adapt to earlier tariff measures.
Analysts warn that the private sector could be significantly affected, with rising costs for raw materials and finished goods likely trickling down to consumers. Households could face higher prices across various essential categories, from pharmaceuticals to home furnishings and heavy transport equipment.
Trump has positioned these tariff increases as a critical element of his strategy to reduce the federal deficit and resurrect domestic manufacturing. Yet, Federal Reserve Chair Jerome H. Powell has indicated a connection between rising goods prices and tariffs, stating, “goods prices are driving the pickup in inflation. Incoming data and surveys suggest that those price increases largely reflect higher tariffs.”
The economic landscape ahead remains uncertain as both businesses and consumers brace for the potential repercussions of these new tariffs. The White House defends its decision as necessary for advancing national interests, but the broader implications could reshape market dynamics in the coming months.
As this situation develops, further reactions from various sectors are anticipated, reflecting the complexities of international trade relations and domestic economic policy.
