Here’s how Trump’s new pharmaceutical, furniture tariffs could hit Americans

President Trump has unveiled steep new tariffs on pharmaceutical drugs, furniture, kitchen cabinets, bathroom vanities and heavy trucks – threatening to raise prices as Americans are already dealing with high costs of living.

New rates set to take hold on Oct. 1 would be painful for Americans, but it’s also likely that these tariffs will not “materialize and will be adjusted or completely revoked,” Ken Mahoney, CEO of Mahoney Asset Management, told The Post.

Hefty tariff rates have been a frequent negotiation tool from the Trump administration, which has kept import taxes in flux throughout talks with foreign nations, he added.

But, if these rates do take effect, a 50% tax on kitchen cabinets and bathroom vanities could cause homeowners to delay renovations, according to Dr. Wayne Winegarden, senior economics fellow at right-leaning research tank Pacific Research Institute.

“You’re dealing with housing affordability, broad affordability [issues]. You know, if people want to redo their bathrooms, well now that’s gonna be a lot more costly,” Winegarden told The Post.

“If you’re going to put a tax on sinks, kitchen cabinets, bathroom vanities, you’re gonna get people purchasing less of them.”

Trump’s hefty 100% tariff on pharmaceutical drugs, meanwhile, could raise costs and even lead to shortages, said Alex Schriver, senior vice president at Pharmaceutical Research and Manufacturers of America (PhRMA).

“Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures,” Schriver told The Post, adding that medicines have historically been exempt from tariffs.

Upholstered furniture and heavy trucks will also face higher tariffs of 30% and 25%, respectively.

Imports accounted for 42% of all upholstered furniture sold in the US in 2020, according to the US International Trade Commission. 

China remains the largest source of furniture imports at $12.6 billion worth, closely followed by Vietnam at $12 billion, according to 2024 estimates.

And “it’s really no secret that China is a huge player in kitchen cabinets. Bathroom vanities? China is a huge player,” Michael Goldman, general manager for North America at CARU Containers, told The Post.

About 57% of the US’ total kitchen cabinet imports come from Southeast Asian countries, and an extra 10% from Mexico, according to US Census Bureau data cited by Coalition for a Prosperous America.

“If [US officials] want something more out of China or feel like China is coming to the table in a really good way, I could completely see these tariffs being delayed, suspended, something like that,” Goldman added.

But it’s not a given that prices will rise across the board, as various companies will likely approach the tariffs in different ways.

A very efficient company with strong margins might be able to absorb the extra costs, while a smaller business with tighter margins that only offers one product, like bathroom vanities, might be forced to raise prices, Goldman said.

Delays on tariffs could also help consumers avoid higher prices for longer, since businesses will likely rush to import goods and build up their inventory at the current lower tariff rates.

A potential concern from the overload of tariffs could be the effect on the Federal Reserve, which recently cut interest rates for the first time since December 2024 – and markets are expecting another cut next month.

Tariffs “could be an impact on inflation, it could be an impact on growth, it could be an impact on both,” said Winegarden, referring to an economic slowdown known as “stagflation.”

These trade shocks make it “so much more confusing” for the Fed to make policy decisions, since economic reports become a mixed bag of data, he continued.

“You’re making a monetary policy mistake more likely.”