Trump again places heavy tariffs

 

    President Donald Trump recently announced a sweeping expansion of tariffs, set to take effect on October 1st, in what he describes as an effort to reduce the federal budget deficit while boosting domestic manufacturing. The new measures include a 100% tariff on pharmaceutical drugs, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks. While the administration used Section 232 of the Trade Expansion Act of 1962 to justify tariffs on pharmaceuticals and trucks, citing national security concerns, the inclusion of furniture and cabinetry stretches the definition further. Trump has framed these tariffs under “National Security and other reasons,” a justification that may face serious legal challenges as the Supreme Court prepares to hear a case in November about the limits of presidential tariff authority.

    The pharmaceutical tariffs stand out as the most consequential. In 2024 alone, the United States imported nearly $233 billion in pharmaceutical and medicinal products. A 100% tariff could, in practice, double the cost of many medicines, raising concerns that patients may be forced to ration or skip essential treatments. This also risks increasing expenses for programs like Medicare and Medicaid. The administration did leave an important exemption, companies currently building or breaking ground on U.S. production facilities will not be subject to the new tax. That clause has already influenced industry behavior, with major pharmaceutical companies such as Johnson & Johnson announcing new domestic investments earlier this year.

Containers are piled upon a cargo terminal in Frankfurt, Germany, on Sept. 9, 2025.Michael Probst/AP

    Economically, the picture is less optimistic. Federal Reserve Chair Jerome Powell warned that tariffs are responsible for “most or all” of the inflation seen this year, even as Trump continues to insist that “there’s no inflation” and that the country is experiencing “unbelievable success.” In reality, the consumer price index has climbed 2.9% over the past 12 months, signaling real cost increases for households. At the same time, the jobs data undermine the idea that tariffs are driving domestic growth. Since the first round of broad tariffs went into effect in April, manufacturers have cut 42,000 jobs, while builders have eliminated 8,000 positions. The 50% tariff on cabinetry and vanities could make the housing market even worse, where high mortgage rates and tight supply already leave many potential buyers priced out.

    Overall, the expansion of tariffs highlights the tension between Trump’s political rhetoric and the economic realities on the ground. While the administration tries to frame tariffs as tools of independence and national security, the immediate impacts have been higher costs, limited job growth, and heightened uncertainty. Whether these policies produce more issues or success, they represent one of the most defining and controversial aspects of Trump’s economic strategy.