On Thursday, former President Donald Trump announced a new round of tariffs. These tariffs are intended to sour consumers on many different types of imported goods and strengthen American manufacturing in the process. As context, the recently implemented tariffs just went into effect in early August. Specifically, they place a 100% tax on patent-protected, branded drugs manufactured overseas, a 25% tariff on heavy-duty truck imports, and a 50% tax on imported kitchen and bathroom cabinets.
Trump’s widely publicized justification for the tariffs was to protect American manufacturers from unfair foreign competition. Further, he emphasized the need to address what he termed “unfair outside competition” in the heavy truck sector. He asserted that the new tariffs are meant to protect domestic manufacturers like Peterbilt and Mack Trucks. These interventions are all part of a larger plan by Trump to increase jobs and manufacturing in the United States.
The newly raised tariffs are making an impact in countries in over 90 per cent of the world. This step reinforces Trump’s willingness to put American industry first. He warned against the avalanche of foreign goods and services coming into the U.S. home market. He argued that these foreign imports are killing American farmers’ businesses and putting their jobs at risk.
Trump’s administration argues that these tariffs will protect U.S. manufacturers and create hundreds of thousands of new jobs. Not surprisingly, many U.S. businesses are lobbying hard to maintain this position. That’s why industry leaders have called on the White House to reconsider its approach. In particular, they’re concerned that a new round of tariffs will undermine supply chains and increase costs to the American consumer.