Trump says US will impose new tariffs on heavy trucks, drugs and kitchen cabinets | Trump tariffs

Donald Trump announced on Thursday a new series of punishing prices, saying that the United States will impose 100% prices on imported brand medicines, 25% prices on imports of all heavy trucks and 50% prices on kitchen cabinets.

The American president also said that he would start to invoice a 50% rate on bathroom vanities and a 30% price on padded furniture next week, with all the new tasks to be taken from October 1.

Pharmaceutical companies warned earlier this year that the Americans would suffer the most if Trump decided to impose prices on pharmaceutical products.

In 2024, the United States imported nearly $ 233 billion in pharmaceutical and medicinal products, according to the census office. The prospect of overtaking prices for certain drugs could send shock waves to voters as health expenses, as well as the costs of Medicare and Medicaid, potentially increase.

Pascal Chan, vice-president of strategic policies and supply chains in the Canadian Chamber of Commerce, warned that prices could harm Americans’ health with “immediate price increases, trendy insurance systems, hospital shortages and the real risk of rationing or waiver of essential drugs”.

“We are already overwhelmed by the highest prescription drugs in the world and that will survive them,” an action statement said an united defense group that tries to elect scientists. “If [Trump] Participate with these prices, people across the country will die. »»

Trump had previously suggested that the pharmaceutical prices would be progressive over time so that companies had time to build factories and move production, making a sudden announcement of a price at 100% more shock. On CNBC in August, Trump said that he would start by charging a “small price” on pharmaceutical products and would increase the rate for one year or more to 150% and even 250%.

Trump said on Truth Social that pharmaceutical rates would not apply to companies that build manufacturing factories in the United States, which he has defined as “disability” or “under construction”. We did not know how prices would apply to companies that already have factories in the United States.

Several large pharmaceutical companies, including Astrazeneca, Roche, Novartis, Eli Lilly and Johnson & Johnson, had already announced its intention to invest or increase the manufacture of their drugs in the United States in order to prepare for potential prices. Trump’s White House praised these changes as a victory.

The markets fell following news, such as concerns about the impact of Trump’s prices have set up. The three main Wall Street indices were down, having already fallen every day since Monday.

Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila withdrew on Friday, certain pharmaceutical companies in Japan and South Korea paved the way.

Although Trump did not provide a legal justification for the prices, he seemed to extend the limits of his role as commander -in -chief by declaring on Truth Social that taxes on the kitchen cabinets and imported sofas were necessary “for national security and other reasons”.

He said the new heavy truck prices were to protect manufacturers from “unfair external competition” and said this decision would benefit companies such as Freightliner belonging to trucks belonging to Paccar and Kenworth and Daimler.

“We need our truckers to be financially healthy and strong, for many reasons, but above all, for national security purposes!” Added Trump.

New prices are another dose of uncertainty for the American economy with a solid stock market but a weakening of jobs of jobs and high inflation. These new import taxes could move to consumers in the form of higher price and mitigate hiring, a process that economic data already suggests.

“We have started to see the prices of the goods manifest in higher inflation,” warned the president of the federal reserve, Jerome Powell, during a recent press conference, adding that higher costs for goods represent “most” or potentially “all” of the increase in inflation levels this year.

Trump has resigned Powell to put pressure on, arguing that the Fed should reduce its more aggressively reference interest rates because inflation is no longer a concern.

The United States Chamber of Commerce has urged the ministry not to impose new prices, noting that the five main import sources are Mexico, Canada, Japan, Germany and Finland “which are all allies or partners close to the United States do not threaten any threat to the national security of the United States”.

Trump has launched many national security surveys into new potential prices on a wide variety of products. He said that the new prices on the kitchen, the bathroom and some furniture were due to enormous import levels that injured local manufacturers.

“Reason is the large-scale” flood “of these products in the United States by other external countries,” said Trump.

Mexico is the largest exporter of medium and heavy trucks in the United States. A study published in January said that imports from these biggest vehicles in Mexico have tripled since 2019.

Strong prices on commercial vehicles could put pressure on transport costs, just as Trump has promised to reduce inflation, in particular on consumer goods such as grocery store.

The prices could also affect the Stelllantes of Chrysler-Parent who produces ram trucks and commercial vans in heavy service in Mexico. The Swedish group Volvo builds a heavy van factory that is 700 million dollars in Monterrey, Mexico, which should start operations in 2026.

Mexico is home to 14 bus manufacturers and assemblers, trucks and tractor trucks, and two engine manufacturers, according to the US International Trade Administration.

The country is also the world’s main exporter of tractor trucks, 95% of which are intended in the United States.

Mexico has opposed new prices, telling the trade department in May that all Mexican trucks exported to the United States have an average of 50% of American content, including diesel engines.

Last year, the United States imported nearly $ 128 billion into Mexico heavy vehicle parts, representing around 28% of the total American imports, Mexico said.

The Japanese Automobile Manufacturers Association also opposed new prices, saying that Japanese companies have reduced exports to the United States because they have stimulated American production of medium and heavy trucks.

Reuters and the Associated Press contributed the reports