Trump Unveils New Tariffs on Trucks, Pharma, and Furniture
The new duties, effective October 1, 2025, are intended to boost domestic manufacturing but have sparked concerns about inflation and supply chain disruptions.
President Donald Trump has announced a new round of tariffs on imported heavy trucks, pharmaceuticals, and furniture, scheduled to take effect on October 1, 2025. The move, aimed at bolstering domestic manufacturing, has been met with a mix of praise from some industry players and sharp criticism from others who fear it will fuel inflation and disrupt global supply chains.
The new tariffs are substantial, with a 100% duty on branded and patented pharmaceutical products, a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture. However, the pharmaceutical tariffs come with a significant exemption: they do not apply to companies that are actively building or have broken ground on manufacturing plants in the United States. that have already announced expansions of their U.S. operations.
Market reaction has been mixed, with some analysts viewing the tariffs as a negotiating tactic rather than a firm policy. Federal Reserve Chair Jerome Powell has previously warned that such tariffs could lead to higher consumer prices, a concern echoed by the National Association of Manufacturers. , as U.S. factories rely on a steady flow of imported goods to maintain full production.
While the tariffs are intended to protect American industries, some experts argue they could have unintended consequences. The Tax Foundation, for instance, has projected that a 15% tariff on all imports could lead to a 0.5% decline in long-run U.S. GDP. With the latest announcement, the average effective U.S. tariff rate has reached its highest level since 1909, adding a .