Donald Trump’s administration is advancing a new wave of tariffs on imports ranging from pharmaceuticals to furniture, with a stated goal of incentivizing domestic production, as reported by Yahoo Finance. The President has threatened tariffs of up to 200% on pharmaceuticals, a move described by trade expert Barry Appleton as industrial policy designed to force drugmakers to relocate jobs and factories to the United States.

Read also: Trump Tariffs Drive Consumer Price Hikes, Inflation Rises

The policy responds to decades of drug production moving overseas. The COVID-19 pandemic highlighted vulnerabilities in relying on foreign supply chains, particularly China. While the announced 100% tariff was lower than some expected, and excludes companies already building U.S. facilities, analysts warn it will likely lead to higher drug prices for American consumers. Major pharmaceutical firms, including Merck & Co. Inc. (MRK), Eli Lilly and Co. (LLY), and Johnson & Johnson (JNJ), have previously announced expansion plans within the U.S.

Separate tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture are expected to impact major exporters like China and Vietnam while increasing costs for U.S. homeowners and builders. Data from the IndexBox platform indicates that these sectors are already experiencing price pressures. According to the Labor Department, prices for living room, kitchen, and dining room furniture have increased by nearly 10% over the past year.

The administration is utilizing Section 232 of the Trade Expansion Act of 1962, which allows for tariffs based on national security threats. This strategy provides an alternative after courts ruled that the President overstepped his authority by using emergency powers for previous tariffs. Some analysts view the tariff on heavy trucks, where the U.S. has a robust industry, as a potential negotiating tactic with Mexico ahead of talks on the U.S.-Mexico-Canada Agreement.

Source: IndexBox Market Intelligence Platform