Trump Starts Trade War 2.0 With New Tariffs
President Donald Trump has announced new tariffs after strong U.S. economic data showed the economy is still doing well.
He placed a 100% tariff on pharmaceutical products, asking foreign companies to build their factories inside the U.S. He also put a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks.
Trump said companies that are already building or planning factories in the U.S. may not face the pharmaceutical tariffs. His goal is to bring more manufacturing jobs back to America and cut reliance on imports.
Along with these trade measures, Trump also said he wants the Federal Reserve to lower interest rates to 2%. He believes cheaper borrowing will help the economy grow even faster.
Impact:
These steps could increase product prices, bring back some jobs to the U.S., and possibly create new tensions in global trade.