On Thursday, President Donald Trump announced significant tariffs on various imports, including a 100% tariff on branded drugs, 25% on heavy-duty trucks, and 50% on kitchen cabinets, effective October 1. Additional tariffs include a 50% charge on bathroom vanities and a 30% tariff on upholstered furniture. This move raised concerns among pharmaceutical companies, which warned that US consumers would face higher prices for essential medications, potentially exacerbating healthcare costs.

Experts, including Pascal Chan from the Canadian Chamber of Commerce, cautioned that these tariffs might lead to immediate price increases and strain healthcare systems. Advocacy group 314 Action criticized the decision, asserting it could endanger lives by making medications unaffordable. Trump justified the tariffs on grounds of national security, claiming they would protect local manufacturers and ensure the economic health of truckers.

While several pharmaceutical companies aimed to bolster US manufacturing in anticipation of such tariffs, the swift announcement of a 100% tax came as a surprise, overturning previous indications of a phased approach. Economic analysts warn that these new tariffs could exacerbate existing inflation trends and disrupt the job market, with Federal Reserve Chair Jerome Powell noting their potential impact on consumer goods prices.

The US Chamber of Commerce has urged against the tariffs, highlighting that major trading partners, including Mexico and Canada, pose no national security threats. Trump’s administration has initiated various inquiries to consider additional tariffs across numerous sectors.



Read full article at www.theguardian.com