Trump's Tariff Turbulence: Impact on U.S.-Mexico Trade Relations

President Trump announces new tariffs on imported drugs, trucks, and furniture, citing national security concerns. The U.S. Chamber of Commerce and international trade partners, like Mexico, oppose the measures. These tariffs coincide with Trump's efforts to tackle inflation, potentially impacting transportation costs and the U.S. economy.

President Donald Trump made a significant announcement on Thursday, revealing a new series of tariffs targeting imported goods. The United States will enforce a 100% tariff on branded drugs, a 25% tariff on all heavy-duty truck imports, and a 50% tariff on kitchen cabinets. Additionally, a 30% tariff on upholstered furniture is set to begin next week.

Trump explained that the heavy-duty truck tariffs aim to shield U.S. manufacturers from "unfair outside competition," benefiting companies like Paccar-owned Peterbilt, Kenworth, and Daimler Truck-owned Freightliner. His administration continues to investigate potential new tariffs on various products for national security protection.

The U.S. Chamber of Commerce advised against the tariffs, highlighting that the leading import sources are allies and partners such as Mexico, Canada, Japan, Germany, and Finland. As Mexico remains a key exporter, the move has implications for transportation costs and companies like Chrysler-parent Stellantis which produces heavy-duty trucks and vans in Mexico.

(With inputs from agencies.)