The Donald Trump administration is advancing with a new wave of definitions on imports ranging from medicines to furniture, with a declared purpose of stimulating local production, as Yahoo said financing. The president threatened the definitions of 200 % on medicines, a step that trade expert Barry Appleon described as an industrial policy aimed at forcing drug makers to transfer jobs and factories to the United States.
Also read: Trump’s tariff pays high consumer prices, inflation rises
Policy responds to drug production decades that move abroad. The Covid-19 epidemic highlighted the weaknesses of relying on foreign supply chains, especially China. While 100 % tariffs were less than expected, and it excludes companies that already build American facilities, analysts warn that it is likely to lead to high prices of medicines for American consumers. Great pharmaceutical companies, including Merck & Co. Inc. (MRK), Lili and Co. (LLY), Johnson & Johnson (JNJ), previously announced the expansion plans within the United States
The separate customs tariffs are expected to affect kitchen cabinets, bathroom arrogance, and upholstered furniture, main sources such as China and Vietnam with increased costs for home owners and builders. Data from the Indexbox platform indicate that these sectors already have price pressure. According to the Ministry of Labor, the prices of the living room, kitchen and dining room furniture increased by almost 10 % during the past year.
Administration uses Article 232 of the 1962 Trade Expansion Law, which allows definitions based on national security threats. This strategy provides an alternative after the courts ruled that the president has overcome his authority using the emergency authorities for the previous definitions. Some analysts view the tariff for heavy trucks, where the United States has a strong industry, as a possible tactic to negotiate with Mexico before talks on the United States, Mexico and Cananga agreement.
Source: Indexbox Market Intelligence
