Trump Implements New Tariffs, Offers US Production Option to Avoid Duties
US President Donald Trump has implemented a series of tariffs on various imports, citing national security and economic concerns. The latest measures target pharmaceuticals, furniture, and other goods, with the President offering companies the option to avoid duties by manufacturing in the US.
Trump justified his actions by stating that the US economy is at risk due to perceived cheating by other countries. He announced a 100 percent tariff on imports of branded drugs and patented medicines, effective October 1. This move follows a 25 percent tariff on large, heavy trucks earlier this year. The President aims to strengthen the domestic economy by making imports more expensive.
To avoid the pharmaceutical tariff, Trump presented companies with an option: build a production facility in the US. He explicitly requested Novartis and Roche to do so, given their ongoing US investments. Additionally, he sent letters to 17 major pharmaceutical companies, including the German firm Boehringer Ingelheim, urging them to lower prices and hinting at potential tariffs for those without US production plans.
The White House confirmed a 15 percent tariff cap on EU imports, including pharmaceuticals. Furthermore, Trump announced 'substantial' tariffs on imports from all countries that do not produce furniture in the US. Upholstered furniture will be subject to an additional tariff of 30 percent. Trump also demanded a 50 percent surcharge on imports of kitchen sinks and bathroom fittings.
Trump's tariff actions, spanning pharmaceuticals, furniture, and other goods, are part of his strategy to boost the US economy. By making imports more expensive, he aims to encourage domestic production and protect American jobs. Companies have been given the opportunity to avoid these tariffs by establishing manufacturing facilities in the US.
