New tariffs is the latest upheaval for global businesses already struggling with snarled supply chains, soaring costs and consumer uncertainty caused by Trump’s trade war.
Businesses across industries are rushing to assess the fallout from President Donald Trump’s latest round of tariffs, announced this week. The measures, set to take effect October 1, include a 100% levy on branded pharmaceutical drugs, a 25% tariff on heavy-duty trucks, and steep duties of 50% on kitchen cabinets and 30% on upholstered furniture.
The White House framed the move as a defense against what Trump described as the “flooding” of foreign goods into the U.S. market. He argued the tariffs would protect domestic manufacturers and revive industries in states like North Carolina, South Carolina, and Michigan.
But the business community is sounding alarms. The U.S. Chamber of Commerce warned that tariffs on trucks could strain supply chains with key allies such as Mexico and Canada, while pharmaceutical companies fear higher costs and reduced access to critical medicines. Asian and European markets reacted swiftly, with pharmaceutical and furniture stocks tumbling after the announcement.
Economists caution that the tariffs could fuel inflationary pressures at home while straining trade relations abroad. Still, the administration insists the duties will generate billions in revenue and strengthen U.S. manufacturing.
For now, companies are scrambling to adjust strategies, weighing whether to absorb higher costs, pass them on to consumers, or accelerate plans to shift production into the United States.
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