Morning Business Report: Trump threatens high tariffs on pharmaceuticals, Social Security moves away from paper checks

President Donald Trump told CNBC’s “Squawk Box” that planned tariffs on pharmaceuticals imported into the U.S. could eventually reach as high as 250%.

(LILAMAX)- President Donald Trump told CNBC’s “Squawk Box” that planned tariffs on pharmaceuticals imported into the U.S. could eventually reach as high as 250%, marking the highest tariff threat he has made to date. While the tariffs won’t start at that level, Trump said they will rise to that point over time.

The move aims to encourage drug companies to bring manufacturing back to the U.S., as domestic drug production has declined sharply over the past few decades. Additionally, the president plans to impose tariffs on semiconductors later this week.

In other news, Social Security will phase out paper checks nationwide starting September 30th. Less than 1% of beneficiaries still receive paper checks, which cost 50 cents each to issue compared to just 15 cents for electronic transfers. This transition is expected to reduce theft. The Social Security website provides instructions on how to enroll in direct deposit.

Stock markets showed little change on Tuesday, with tech stocks lagging as investors processed recent earnings reports.

Meanwhile, Americans collectively owe $1.21 trillion on credit cards, according to a new report from the Federal Reserve Bank of New York, matching last year’s record high. A separate report from Equifax shows many consumers continue to spend despite higher prices and borrowing costs.

In a lighter note, a new documentary directed by Mike Dorsey highlights nuns who helped dozens of refugees, including family members of soldiers, escape Ukraine during the Russian invasion. The film is now available on Apple TV, Google Play Movies, and Fandango at Home.