What happened
President Donald Trump Thursday night said he would impose new tariffs on drugs, heavy trucks and furniture starting next Wednesday. Drugmakers who have broken ground on new U.S. manufacturing plants by then would be exempt from the new 100% import tax, he said.
Who said what
Trump said he was using his authority under Section 232 of the 1962 Trade Expansion Act to slap tariffs of 25% on semi trucks, 30% on upholstered furniture, 50% on kitchen and bathroom cabinetry and 100% on some “branded or patented” drugs. The increasing use of Section 232 is “seen as part of the Trump administration’s shift to better-established legal authorities for its tariff actions,” Reuters said. Trump’s “sweeping global tariffs,” issued under different emergency powers, face an uncertain future before the Supreme Court.
The new import taxes add “another dose of uncertainty for the U.S. economy with a solid stock market but a weakening outlook for jobs and elevated inflation,” The Associated Press said. Homebuilders and homeowners will face higher prices from the cabinetry tax, and the “prospect of prices doubling for some medicines could send shock waves to voters.” Higher tariffs on commercial trucks “could put pressure on transportation costs,” hitting a broad range of consumer goods, Reuters said.
What next?
Many drugs may be subject to lower tariffs due to trade deals or because they are generics, but Trump “made his announcements on social media, and much remains unclear about them,” The New York Times said. Further new tariffs could be coming, after the Trump administration this week opened Section 232 investigations into imported robotics, industrial machinery and medical devices.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Political cartoons for November 27Cartoons Thursday's political cartoons include giving thanks, speaking American, and more
-
We Did OK, Kid: Anthony Hopkins’ candid memoir is a ‘page-turner’The Week Recommends The 87-year-old recounts his journey from ‘hopeless’ student to Oscar-winning actor
-
The Mushroom Tapes: a compelling deep dive into the trial that gripped AustraliaThe Week Recommends Acclaimed authors team up for a ‘sensitive and insightful’ examination of what led a seemingly ordinary woman to poison four people
-
Why do Republicans fear immigration raids in North Carolina?Today’s Big Question Trump’s aggressive enforcement sparks backlash worries
-
Trump tariff uncertainty casts a dark cloud over Black FridayIN THE SPOTLIGHT Retailers and shoppers alike are starting to reassess their seasonal prospects as the Trump administration’s efforts to upturn the global economy start hitting close to home
-
Trump’s Ukraine peace talks advance amid leaked callSpeed Read Trump’s envoy Steve Witkoff is set to visit Russia next week
-
Memo signals Trump review of 233k refugeesSpeed Read The memo also ordered all green card applications for the refugees to be halted
-
Judge tosses Trump DOJ cases against Comey, JamesSpeed Read Both cases could potentially be brought again
-
X’s location update exposes international troll industryIn the Spotlight Social media platform’s new transparency feature reveals ‘scope and geographical breadth’ of accounts spreading misinformation
-
Tariffs: Will Trump’s reversal lower prices?Feature Retailers may not pass on the savings from tariff reductions to consumers
-
Trump: Is he losing control of MAGA?Feature We may be seeing the ‘first meaningful right-wing rebellion against autocracy of this era’
