Trump launches new tariff offensive: Sharp import duties planned

President Donald Trump announced a new round of tariffs on a broad range of imported goods on Thursday. The focus is primarily on genetically marked pharmaceuticals with a 100% levy and heavy-duty trucks with a 25% rate. Starting October 1, kitchen furniture and bathroom suites will also be taxed at 50% and upholstered furniture at 30%. The existing trade agreements of the Trump administration with Japan, the EU, and the United Kingdom include restrictions on specific products such as cars, semiconductors, and pharmaceuticals. These agreements limit the new security tariffs to the contractually agreed maximum rates. Accordingly, the EU has committed to pay tariffs of 15% on cars, auto parts, pharmaceuticals, and semiconductors, as stated in a White House release in July. In August, the USA and China agreed to extend a tariff truce by 90 days, averting triple-digit import tariffs on mutual products. This remains the case at least until November 10, with Chinese imports to the USA being taxed at 30% and vice versa at 10%. The White House initially did not respond to inquiries on whether the new tariffs would apply additionally or be listed separately for China. According to the industry publication Furniture Today, the USA imported furniture worth about $25.5 billion in 2024, with around 60% of these imports coming from Vietnam and China. The new measures are viewed as part of Trump’s efforts to establish legal bases for his tariff increases. The background is a case before the U.S. Supreme Court examining the legality of his globally applied tariffs. On September 9, the Supreme Court decided to review the legality of these tariffs, marking a major test in Trump's economic and trade policy agenda. Arguments on this are scheduled for November 5.