The Donald Trump administration is advancing a new wave of import tariffs, including pharmaceuticals to furniture, with the aim to motivate domestic production, as reported by Yahoo Mali. The President has threatened a maximum of 200 % tariffs on drug drugs, a move designed by Barry Appleton’s business expert as an industrial policy designed to force pharmacies to move businesses and factories to the United States.
Also Read: Trump Tariffs Increase Consumer Price, Increase Inflation
This policy responds to decades of drug production abroad. The Coveid-19 epidemic highlighted vulnerabilities in relying on foreign supply chains, especially China. While the 100 % declared tariff is lower than some, and deprives companies that have previously established US facilities, analysts warn that it will probably lead to increased drug prices for US consumers. Large pharmaceutical companies, including Merck & Co. (MRK), Eli Lily and Lly (LLY) and Johnson and Johnson (JNJ) have previously announced expansion programs in the United States
Separate tariffs on kitchen cabinets, bathrooms and furniture of uphols or interiors are expected to affect major exporters such as China and Vietnam, while increasing costs for US homeowners and builders. Data from the Indexbox platform show that these sections are currently experiencing price pressures. According to the Labor Department, the price of the living room, kitchen and dining room furniture has risen by nearly 10 % compared to last year.
The government uses section 232 of the 1962 Trade Development Act, which allows for tariffs on national security threats. The strategy offers a replacement after the court’s ruling that the President has surpassed his authority by using emergency powers for previous tariffs. Some analysts see the tariffs for heavy trucks in which the United States has a strong industry as a possible tactic of negotiating with Mexico before negotiating the US-Mexico-Canada agreement.
Source: Indexbox market information platform
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