Shipping containers stacked at a freight terminal in Frankfurt, Germany, on September 9, 2025.
Michael Probst/AP
WASHINGTON – On Thursday, President Donald Trump announced plans to impose steep import tariffs starting October 1, including a 100% tax on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy-duty trucks.
These new tariffs, revealed through posts on his social media platform, indicate that Trump’s commitment to using import taxes as a tool for economic policy remains strong, extending beyond the trade measures introduced in August. He believes these tariffs will help shrink the federal budget deficit while boosting American manufacturing.
Although Trump did not cite a specific legal basis for these tariffs, he invoked national security concerns on Truth Social, justifying the duties on imported kitchen cabinetry and sofas as necessary “for National Security and other reasons,” a move that stretches the traditional scope of presidential authority.
Earlier this year, the administration initiated a Section 232 investigation under the Trade Expansion Act of 1962, examining how imports of pharmaceuticals and heavy trucks might affect national security. Additionally, the Commerce Department began a similar probe into timber and lumber imports in March, which may be linked to the furniture tariffs, though this connection remains unclear.
The introduction of these tariffs adds another layer of unpredictability to the U.S. economy, which currently features a robust stock market but faces a dimmer outlook for employment and persistent inflation. The increased costs on imported goods are likely to be passed on to consumers, potentially leading to higher prices and slower job growth-trends that recent economic data already suggest.
Federal Reserve Chair Jerome Powell recently cautioned that rising prices for goods are contributing significantly to inflation, stating that these cost increases might account for “most” or even “all” of the inflationary pressures seen this year.
Trump has publicly urged Powell to step down, arguing that the Federal Reserve should aggressively lower interest rates since inflation is no longer a pressing issue. However, Fed officials remain cautious about cutting rates amid the uncertainty created by these tariffs.
On Truth Social, Trump clarified that the pharmaceutical tariffs would exempt companies actively constructing or breaking ground on manufacturing facilities within the United States. However, it remains unclear how these tariffs will affect firms with existing U.S. factories.
In 2024, the U.S. imported nearly $233 billion worth of pharmaceutical and medicinal products, according to Census Bureau data. Doubling the cost of some medications could have significant repercussions for voters, as it may increase healthcare expenses and strain programs like Medicare and Medicaid.
This announcement surprised many, as Trump had previously indicated that tariffs on pharmaceuticals would be phased in gradually, allowing companies time to establish domestic production. In August, he mentioned on CNBC that he planned to start with a modest tariff and potentially raise it to 150% or even 250% over a year or more.
The White House credits the earlier tariff threats with prompting major pharmaceutical companies-including Johnson & Johnson, AstraZeneca, Roche, Bristol Myers Squibb, and Eli Lilly-to commit to expanding manufacturing operations in the U.S.
Pascal Chan, vice president for strategic policy and supply chains at the Canadian Chamber of Commerce, warned that these tariffs could jeopardize American health by causing immediate price surges, overwhelming insurance systems, creating hospital shortages, and forcing patients to ration or skip essential medications.
The new duties on cabinetry may further drive up costs for homebuilders, exacerbating affordability challenges amid housing shortages and elevated mortgage rates. Although the National Association of Realtors reported an 11.7% increase in home listings in August compared to last year, the median price for an existing home remains high at $422,600.
Trump also emphasized that foreign-made heavy trucks and parts are undermining U.S. manufacturers, and he pledged to protect domestic producers such as Peterbilt, Kenworth, Freightliner, and Mack Trucks from foreign competition.
He has consistently argued that tariffs are essential to incentivize companies to invest in American factories, dismissing concerns that importers would simply transfer the added costs to consumers and businesses through higher prices.
Previously, Trump’s broad tariffs were justified under a 1977 law declaring an economic emergency, a move challenged in federal courts for exceeding presidential authority. The Supreme Court is scheduled to review this case in November.
Despite evidence showing inflation remains a concern-with the consumer price index rising 2.9% over the past year, up from 2.3% in April when the tariffs began-Trump continues to assert that inflation is no longer an issue, claiming, “We’re having unbelievable success.”
Moreover, there is no clear indication that these tariffs have spurred job growth in manufacturing or construction. Since April, the Bureau of Labor Statistics reports a loss of 42,000 manufacturing jobs and a reduction of 8,000 construction jobs.
Trump acknowledged that his tariffs on China have negatively impacted American farmers, particularly soybean producers. He promised to redirect tariff revenues to support farmers affected by retaliatory trade measures, similar to his approach during his first term in 2018 and 2019.
