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.
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