On Thursday, President Donald Trump announced a new round of punishing tariffs, stating that the United States will impose a 100% tariff on imported branded drugs, a 25% tariff on all heavy-duty truck imports, and a 50% tariff on kitchen cabinets.
Trump also announced that he would begin charging a 30% tariff on upholstered furniture next week.
He stated that the new heavy-duty truck tariffs are intended to protect manufacturers from “unfair outside competition” and that the move will benefit companies such as Paccar-owned PCAR.O Peterbilt and Kenworth, as well as Daimler Truck-owned DTGGe.DE Freightliner.
Trump has conducted numerous national security investigations into potential new tariffs on a wide range of products.
He claimed that the new tariffs on kitchen, bathroom, and some furniture were due to high levels of imports that were harming local manufacturers.
“The reason for this is the large-scale ‘FLOODING’ of these products into the United States by other outside countries,” Trump stated, citing national security concerns about American manufacturing.
The US Chamber of Commerce urged the department not to impose new tariffs, noting that the top five import sources are Mexico, Canada, Japan, Germany, and Finland, “all of which are allies or close partners of the United States posing no threat to U.S. national security.”
Mexico is the leading exporter of medium and heavy-duty trucks to the United States. According to a study released in January, imports of larger vehicles from Mexico have tripled since 2019.
Higher tariffs on commercial vehicles may put pressure on transportation costs, just as Trump has promised to reduce inflation, particularly on consumer goods like groceries.
Tariffs may also affect Chrysler parent Stellantis STLAM.MI, which manufactures heavy-duty Ram trucks and commercial vans in Mexico. Sweden’s Volvo Group VOLVb.ST is constructing a $700 million heavy-truck factory in Monterrey, Mexico, with plans to begin production in 2026.
According to the United States International Trade Administration, Mexico has 14 manufacturers and assemblers of buses, trucks, and tractor trucks, as well as two engine manufacturers.
The country is also the world’s leading exporter of tractor trucks, with 95% destined for the United States.
“We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!” Trump added.
Mexico opposed new tariffs, informing the Commerce Department in May that all Mexican trucks exported to the United States contained at least 50% U.S. content, including diesel engines.
Last year, the United States imported nearly $128 billion in heavy vehicle parts from Mexico, accounting for roughly 28% of total US imports, according to Mexico.
The Japanese Automobile Manufacturers Association also opposed the new tariffs, claiming that Japanese companies have reduced exports to the United States while increasing U.S. production of medium- and heavy-duty trucks.
