On Friday, US President Donald Trump announced an expansion of tariffs, implementing a 100% duty on all patented or branded pharmaceutical products starting October 1. Additionally, a 50% tariff will be levied on kitchen cabinets, bathroom vanities, and similar items, while heavy trucks will incur a 25% tariff. These actions are a result of investigations conducted under Section 232 of the Trade Expansion Act of 1962, which permits tariff increases based on “national security” considerations. This announcement arrives just weeks ahead of a significant US Supreme Court decision that might restrict Trump’s authority under the International Emergency Economic Powers Act (IEEPA). Should the ruling be unfavorable for the administration, the White House may need to reconsider some reciprocal tariffs.
For India, these tariffs present a direct challenge as the nation is already facing a 50% tariff that jeopardizes jobs in labor-intensive sectors such as textiles, footwear, and marine exports. This latest tariff expansion threatens to further strain trade relations and increase economic uncertainty for Indian exporters reliant on the US market.