US President Donald Trump announced a new taxation package on September 25, which will affect home fixtures, furniture, and heavy trucks, as well as impose steep tariffs on pharmaceuticals. The measures, effective October 1, mark Trump’s toughest trade action since April’s sweeping reciprocal duties on nearly all US trading partners.
"We will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company IS BUILDING their pharmaceutical manufacturing plant in America," Trump wrote on his Truth Social platform. According to The New York Times, the planned tariffs are 50% on imported kitchen cabinets, bathroom vanities, and associated products; 30% on foreign semi-trucks; and 100% on pharmaceutical products.
Financial experts have been warning about the consequences of the escalating trade war on the national economy. In this gallery, we take a closer look at what a tariff actually is, its impact, and why President Trump favors them. Click through for more.