Tariff Updates:US President Donald Trump spoken tariffs on several products on Thursday. According to Trump, starting October 1, a 100% tariff will be imposed on pharmaceutical drugs, a 50% tariff on kitchen cabinets and washroom vanities, a 30% tariff on furniture, and a 25% tariff on heavy trucks. He shared this information on his social media platform, Truth Social.
Relief for Some Companies
The President moreover stated that these spare tariffs on pharmaceuticals will not wield to companies operating manufacturing plants in the United States. He argues that this will uplift American employment and domestic production while executive imports from foreign companies.
Impact on Medicine and Medicare
According to the Census Bureau data, in 2024, the US has imported virtually $ 233 billion medicines. Experts say that the prices of some drugs may double without the tariff is implemented. This could moreover increase Medicare and Medicaid expenses for Americans.
Impact on Inflation
Recent months have seen a steady increase in the Consumer Price Index. It was 2.9% in the last 12 months, compared to 2.3% in April, when Trump first implemented the import duty. The new tariff is likely to put remoter pressure on inflation and economic growth may slow down.
Overall, Trump's new import duty may prove challenging for the US market, health sector and consumers, while uncertainty for companies and economy is increasing.
