WASHINGTON: President Donald Trump on Thursday announced a new round of punishing tariffs, saying the United States will impose a 100% tariff on imported branded drugs, 25% tariff on imports of all heavy-duty trucks and a 50% tariff on kitchen cabinets.
Trump also said he would start charging a 30% tariff on upholstered furniture next week.
He said the new heavy-duty truck tariffs were to protect manufacturers from "unfair outside competition" and said the move would benefit companies such as Paccar-owned, opens new tab Peterbilt and Kenworth and Daimler Truck-owned, opens new tab Freightliner.
Trump has launched numerous national security probes into potential new tariffs on a wide variety of products.
He said the new tariffs on kitchen, bathroom and some furniture were because of huge levels of imports which were hurting local manufacturers.
"The reason for this is the large scale “FLOODING” of these products into the United States by other outside Countries," Trump said, citing national security concerns about U.S. manufacturing.
The U.S. Chamber of Commerce urged the department not to impose new tariffs, noting the top five import sources are Mexico, Canada, Japan, Germany, and Finland "all of which are allies or close partners of the United States posing no threat to U.S. national security."
Mexico is the largest exporter of medium- and heavy-duty trucks to the United States. A study released in January said imports of those larger vehicles from Mexico have tripled since 2019.
Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation, especially on consumer goods such as groceries.
Tariffs could also affect Chrysler-parent Stellantis, opens new tab which produces heavy-duty Ram trucks and commercial vans in Mexico. Sweden's Volvo Group, opens new tab is building a $700 million heavy-truck factory in Monterrey, Mexico, due to start operations in 2026.
Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and two manufacturers of engines, according to the U.S. International Trade Administration.
The country is also the leading global exporter of tractor trucks, 95% of which are destined for the United States.
"We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!," Trump added.
Mexico opposed new tariffs, telling the Commerce Department in May that all Mexican trucks exported to the United States have on average 50% U.S. content, including diesel engines.
Last year, the United States imported almost $128 billion in heavy vehicle parts from Mexico, accounting for approximately 28% of total U.S. imports, Mexico said.
The Japanese Automobile Manufacturers Association also opposed new tariffs, saying Japanese companies have cut exports to the United States as they have boosted U.S. production of medium- and heavy-duty trucks. - Reuters
