(Reuters) -President Donald Trump on Thursday unleashed a fresh round of punishing tariffs on a broad range of imported goods, including 100% duties on branded drugs and 25% tariffs on heavy-duty trucks. Trump also said he would start charging a 50% tariff on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture, […]
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Explainer-What to know about Trump’s tariffs on branded drugs, furniture and other goods
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(Reuters) -President Donald Trump on Thursday unleashed a fresh round of punishing tariffs on a broad range of imported goods, including 100% duties on branded drugs and 25% tariffs on heavy-duty trucks.
Trump also said he would start charging a 50% tariff on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture, with all the new duties to take effect from October 1.
WILL THE TARIFFS APPLY TO COUNTRIES WITH TRADE DEALS?
The Trump administration’s trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products such as autos, semiconductors and pharmaceuticals, which means the new higher national security tariffs likely won’t raise them above agreed rates.
The European Union agreed to pay the U.S. a tariff rate of 15%, including on autos and auto parts, pharmaceuticals, and semiconductors, according to a statement released by the White House in July.
Under the trade deal agreed with Japan, “treatment of specific or compound duty rates shall be identical to the treatment provided to products of the European Union,” according to a statement released by the White House in early September.
HOW DOES IT IMPACT CHINESE EXPORTS TO THE U.S.?
In August, the U.S. and China extended a tariff truce for another 90 days, staving off triple-digit duties on each other’s goods.
The deal locks in place – at least until November 10 – a 30% tariff on Chinese imports, with Chinese duties on U.S. imports at 10%.
It is not immediately clear if the new round of tariffs would be imposed on top of the tariffs China is already paying or would be separately applied.
The White House did not immediately reply to requests for comment.
The United States imported about $25.5 billion in furniture in 2024, with about 60% of those imports coming from Vietnam and China, according to Furniture Today, a trade publication.
COULD PENDING SUPREME COURT RULING IMPACT ENFORCEMENT OF NEW TARIFFS?
The new actions are seen as part of the Trump administration’s shift to better-established legal authorities for its tariff actions, given the risks associated with a case before the Supreme Court on the legality of his sweeping global tariffs.
The U.S. Supreme Court on September 9 agreed to decide the legality of Trump’s sweeping global tariffs, setting up a major test of one of his boldest assertions of executive power that has been central to his economic and trade agenda.
Arguments are scheduled for November 5.
(Reporting by Miyoung Kim; Editing by Lincoln Feast.)