President Donald Trump rolled out major import tariffs on September 26, 2025, including 100% duties on patented drugs and 25% on heavy-duty trucks, effective next week.
The move aims to shield U.S. manufacturing and security but raises trade worries after a brief calm.
Broad Impact
The tariffs follow earlier hikes of up to 50% on partners and levies on steel and autos.
Trump’s Truth Social post highlighted the new duties, targeting kitchen cabinets (50%), bathroom vanities (50%), and upholstered furniture (30%), hitting consumer goods hard.
Market Reactions
Global stocks dipped, the dollar strengthened, and gold prices fell as investors reacted. Wall Street closed lower, with the Dow down 0.37% to 46,121.28, S&P 500 off 0.28% to 6,637.97, and Nasdaq down 0.33% to 22,497.86. Europe’s STOXX 600 slipped 0.19%, but defense stocks rose 1.5%.
Housing Data Boost
U.S. new home sales jumped 20.5% in August to 800,000 units, beating forecasts of 650,000. This strong figure, alongside Powell’s cautious rate cut comments, suggests the economy may not need quick cuts.
Currency Shifts
The dollar index rose 0.66% to 97.87, gaining against the euro (down 0.66% to $1.1737), yen (up 0.83% to 148.85), and Swiss franc (up 0.54% to 0.795). Gold fell 0.86% to $3,731.62 per ounce.
Oil and Bonds Move
Oil hit a seven-week high, with U.S. crude up 2.49% to $64.99 and Brent up 2.48% to $69.31, due to tight supplies. U.S. Treasury yields climbed, with 10-year notes at 4.147% and 2-year at 3.604%.
Trade Deal Questions
Recent deals with Japan, the EU, and South Korea cap some tariffs at 15% for pharmaceuticals. Britain’s 10% base tariff doesn’t cover drugs, but officials seek concessions.
The Commerce Department launched new probes into machinery, robotics, and medical gear.
Automaker Concerns
A coalition of automakers, including GM, Toyota, and Volkswagen, pushed for easier emissions rules. Trump’s tariffs could disrupt supply chains, raising costs for consumers.
What’s Next
Investors await Friday’s inflation data. Trump’s tariffs may pressure growth, but strong housing and oil signals suggest resilience.
