Trump unveils sweeping tariffs as shutdown deadline approaches
President Donald Trump revealed a wide-ranging set of new tariffs just days before a potential government shutdown.
(NBC)- A political one-two punch is shaking Washington — and could have massive ripple effects through the U.S. economy.
President Donald Trump revealed a wide-ranging set of new tariffs just days before a potential government shutdown. Under the plan, several pharmaceutical products will face a 100% tariff unless the company is actively building a manufacturing plant in the United States.
“Pharmaceutical companies are moving back to America, where they should be,” Trump said on July 15.
The announcement goes further, placing a 25% tariff on heavy trucks, a 50% tariff on kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture. The moves are part of Trump’s broader push to boost domestic manufacturing.
But economists warn tariffs, essentially a tax on imported goods, could backfire — driving up costs for American businesses and consumers at a time when inflation is already climbing. The pharmaceutical industry quickly raised alarms. A spokesperson for the Pharmaceutical Research and Manufacturers of America told The Wall Street Journal that billions in U.S. investment could be at risk, saying: “Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or future treatments and cures.”
The tariffs are scheduled to take effect October 1 — the same day a government shutdown will occur if Congress fails to strike a deal. Trump is pointing the finger at Democrats, who are holding firm on demands for more healthcare funding and a reversal of Medicaid cuts.
A shutdown would have sweeping consequences, disrupting services from the military to postal operations to air travel. The White House is raising the stakes even higher, warning that millions of federal workers could be permanently laid off rather than furloughed.
House Democratic Leader Hakeem Jeffries fired back: “We will not be intimidated by these threats.”
Meanwhile, NBC News has learned that Defense Secretary Pete Hegseth has called nearly every senior American military officer to a rare meeting at a Marine Corps base near Washington, D.C., next week. The gathering is expected to include nearly 800 generals and admirals.
President Trump attempted to downplay the significance of the unusual assembly.
“But why is that such a big deal?” he said from the Oval Office. “The fact that we’re getting along with the generals and admirals… remember, I’m the president of peace.”
