Trump Administration Imposes Major Tariff Hikes, Consumers to Pay More
President Trump's administration has announced new tariffs, with significant increases on various products. These measures, set to take effect on October 1, 2022, include a 100 percent tariff on branded pharmaceuticals, 50 percent on kitchen cabinets and bathroom vanities, 30 percent on upholstered furniture, and 25 percent on heavy trucks. This comes as the U.S. Department of Justice seeks Supreme Court review of the constitutionality of Trump's tariff powers under the International Emergency Economic Powers Act of 1977.
The latest tariffs are justified under Section 232 of the Trade Expansion Act of 1962, suggesting the administration anticipates losing the IEEPA case. Future tariffs are likely to be imposed using statutes such as Sections 122, 201, and 301 of the Trade Act of 1974, and Section 338 of the Smoot-Hawley tariff bill from 1930. Consumers can expect no respite, as tariff increases are planned to continue throughout Trump's term.
Public opinion remains firmly against these measures, with 64 percent of Americans opposing them. The new tariffs are expected to raise costs for consumers, particularly for pharmaceuticals and furniture. While drugs from companies building US factories are exempt, the definition of 'broken ground' is unclear, leaving room for interpretation.
The Trump administration's tariff strategy is set to continue, with a shift in legal basis and no sign of relief for consumers. The Supreme Court review of Trump's tariff powers under IEEPA is ongoing, with potential implications for future trade policies.
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