Trump to put prices on cabinets, furniture, pharmaceutical products and heavy trucks
President Donald Trump said Thursday that he would put 100% import taxes on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on padded furniture and 25% on heavy trucks from Wednesday.
Articles on its social media site Truth Social did not mention whether the new levies would accumulate in addition to existing national prices, but have shown that the devotion of Trump at the prices has not ended with commercial executives and import taxes already launched this year, including an announcement of the liberation day in April which sent raising markets.
Additional prices may intensify American inflation which is already high, as well as the slowdown in economic growth, because employers get used to the previous Trump import taxes struggling with new levels of uncertainty.
“We have started to see the prices of goods showing up in higher inflation,” warned the president of the Federal Reserve Jerome Powell during a recent press conference.
The consumer price index increased by 2.9% in the last 12 months, against an annual rate of 2.3% in April, when most prices started.
Powell added that higher costs for goods represent “most” or potentially “of increasing inflation levels this year.
“There is no inflation,” Trump told journalists on Thursday. “We have incredible success.”
The prices add another challenge for countries that are still negotiating trade agreements with the Trump administration, including Canada and Mexico.
In June, Trump doubled his prices on steel and aluminum at 50%. While prices apply to all imports, Canada is the best supplier of the two metals in the United States
Trump also increased the prices in August on goods that do not comply with the agreement of existing (CUSMA) mexico-united-UNITED-UNITED (CUSMA) and has added a rate of 50% to certain copper imports.
Prime Minister Mark Carney said in August that counter-vaulses would be withdrawn from American products “specifically covered by CUSMA”. But an opinion posted discreetly online shows that Canada has deleted all reprisal rates, which means that Canada policy is not exactly reciprocal, as the government has suggested.
‘Unfair, unjustified’
Pascal Chan, vice-president of strategic policies and supply chains of the Canadian Chamber of Commerce, warned that pharmaceutical prices could harm Americans’ health with “immediate price increases, tense insurance systems, hospital shortages and the real risk of rationing or renunciation of essential drugs”.
The tax credits that have made health insurance more affordable in the United States should already expire at the end of the year without intervention and are a collision point as a potential stop on the government is looming next week. The credits have applied to people with low and intermediate income who buy health insurance through the Act respecting affordable care.
The actions of pharmaceutical companies across Asia fell on Friday while investors reacted.
In Australia, the Minister of Health, Mark Butler, told journalists that the government was trying to understand the implications of the new “unjustified and unjustified rates after 20 years of free trade”.
Trump said on Truth Social that pharmaceutical prices would not apply to companies that build manufacturing factories in the United States, which he has defined as “rupture” or under construction. We did not know how prices would apply to companies that already have factories in the United States
Pharmaceutical research and American manufacturers, an industry group, said that companies “continue to announce hundreds of billions of new American investments. The prices risk these plans”.
In 2024, America imported nearly 233 billion US dollars in pharmaceutical and medicinal products, according to the census office.
From the end of 2022 to mid-2013, more than 22,000 drug products were sold on the American market, with 1.9% of those manufactured in Canada, according to a Jama report, the American Medical Association review.
Of the 411 products made in Canada, 79% were generics and 21% were brand products, 4.9% of which were under the protection of patents, according to the report.
Trump noted in his advertisement that the generics would be exempt from any price on brand drugs or patented. But it is not clear at this stage where Canadian products will be affected.
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Us Chamber warned against truck prices
Trump said heavy foreign manufacturing trucks and the parts are hurting national producers.
Manufacturers such as “Peterbilt, Kenworth, Freightliner, Mack Trucks and others will be protected from the assault on external interruptions,” he wrote.
The American Chamber of Commerce previously urged the ministry not to impose new truck prices, noting that the five main import sources are Mexico, Canada, Japan, Germany and Finland, “who are all allies or partners close to the United States do not threaten any threat to the national security of the United States”.
The new tariffs on the cabinets could further increase costs for house manufacturers when many people seeking to buy a feeling of a house reduced by the mixture of housing shortages and high mortgage rates.
Regarding furniture, around 60% of imports in 2024 came from Vietnam and China, according to furniture today, a commercial publication.
Central banks generally increase interest rates to control prices during periods of inflation, but the Bank of Canada and the American Federal Reserve reduce rates. Andrew Chang explains how Trump’s prices and a collapsed labor market have led to the same inflection point for country’s duel economies. Images provided by Getty Images, The Canadian Press and Reuters.
Trump said foreign furniture and cabinet manufacturers flooded the United States with their products and that prices must be applied “for national security and other reasons.”
Trump administration has played an impact on consumer prices and prices presented as a significant source of income, the Treasury Secretary Scott Bessent saying Washington could collect $ 300 billion at the end of the year.
There is little evidence that prices create factory jobs or more construction of manufacturing facilities. Since April, the American Labor Statistics Office has indicated that manufacturers had reduced 42,000 jobs and that manufacturers have decreased by 8,000.
Trump did not provide a legal justification for the prices of his article on social networks.
His wider prices in countries per country earlier this year relied on the 1977 emergency economic power law law. Two federal courts declared that Trump’s pricing policies had exceeded his authority as president, but the Supreme Court will hear arguments on the issue at the beginning of November.
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