New Duties Push U.S. Tariff Rates to 100-Year High
U.S. President Donald Trump’s latest wave of tariff policies has jolted global markets and intensified trade tensions with major partners. The centerpiece of this strategy is a sweeping order on “reciprocal” tariffs, which took effect August 7, targeting 69 trading partners. The order raises import duties to between 10% and 41%, pushing the average U.S. tariff rate to its highest level in a century.
As part of this escalation, a 100% tariff on branded or patented pharmaceutical imports came into force on October 1. The policy includes exceptions for pharmaceutical companies investing in U.S.-based manufacturing. Simultaneously, the administration imposed 25% duties on heavy-duty trucks, aiming to shift global supply chains closer to home.
More Tariffs Coming in October
The tariff rollout continues through October, with several key dates set to reshape import costs across industries. On October 14, a new round of duties will target consumer goods, including:
- 10% tariffs on imported timber and lumber
- 25% tariffs on kitchen cabinets and bathroom vanities
- 25% duties on upholstered furniture
These levies are expected to disrupt supply chains ahead of the holiday season and affect home improvement retailers and furniture manufacturers relying on imports from Asia and Europe.
Trade Talks and Temporary Truces
Canadian Prime Minister Mark Carney is scheduled to meet with Trump on October 7 in Washington to address both economic and security concerns, potentially including tariff exemptions for North American partners.
Meanwhile, the U.S.-China tariff truce has been extended through early November, providing a temporary pause in the trade war as importers prepare for the peak holiday season. However, with no long-term agreement in sight, market uncertainty remains high.
Higher Tariffs Set for 2026
Looking ahead, more aggressive tariffs are on the horizon. Starting January 1, 2026, the U.S. will implement even steeper duties on goods from nations without trade deals:
- 30% tariffs on upholstered furniture
- 50% tariffs on kitchen cabinets and vanities
These increases are part of Trump’s broader push to renegotiate global trade through bilateral deals and revive domestic manufacturing.
