*
Trump cites national security concerns for new round of
tariffs
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US Chamber of Commerce opposes tariffs, says top import
sources
are allies
*
Mexico, Japan oppose tariffs, highlighting U.S. production
and
export content
(Adds details on other new tariffs throughout, adds bullet
points)
By David Shepardson
WASHINGTON, Sept 25 (Reuters) - President Donald Trump
on Thursday announced a new round of punishing tariffs, saying
the United States will impose a 100% tariffs on imported branded
drugs, 25% tariff on imports of all heavy-duty trucks and 50%
tariffs on kitchen cabinets.
Trump also said he would start charging a 30% tariff on
upholstered furniture next week.
He said the new heavy-duty truck tariffs were to protect
manufacturers from "unfair outside competition" and said the
move would benefit companies such as Paccar ( PCAR )-owned
Peterbilt and Kenworth and Daimler Truck-owned
Freightliner.
Trump has launched numerous national security probes into
potential new tariffs on a wide variety of products.
He said the new tariffs on kitchen, bathroom and some
furniture were because of huge levels of imports which were
hurting local manufacturers.
"The reason for this is the large scale "FLOODING" of these
products into the United States by other outside Countries,"
Trump said, citing national security concerns about U.S.
manufacturing.
The U.S. Chamber of Commerce urged the department not to
impose new tariffs, noting the top five import sources are
Mexico, Canada, Japan, Germany, and Finland "all of which are
allies or close partners of the United States posing no threat
to U.S. national security."
Mexico is the largest exporter of medium- and heavy-duty
trucks to the United States. A study released in January said
imports of those larger vehicles from Mexico have tripled since
2019.
Higher tariffs on commercial vehicles could put pressure on
transportation costs just as Trump has vowed to reduce
inflation, especially on consumer goods such as groceries.
Tariffs could also affect Chrysler-parent Stellantis ( STLA )
which produces heavy-duty Ram trucks and commercial
vans in Mexico. Sweden's Volvo Group is building a
$700 million heavy-truck factory in Monterrey, Mexico, due to
start operations in 2026.
Mexico is home to 14 manufacturers and assemblers of
buses, trucks, and tractor trucks, and two manufacturers of
engines, according to the U.S. International Trade
Administration.
The country is also the leading global exporter of tractor
trucks, 95% of which are destined for the United States.
"We need our Truckers to be financially healthy and strong,
for many reasons, but above all else, for National Security
purposes!," Trump added.
Mexico opposed new tariffs, telling the Commerce Department
in May that all Mexican trucks exported to the United States
have on average 50% U.S. content, including diesel engines.
Last year, the United States imported almost $128 billion in
heavy vehicle parts from Mexico, accounting for approximately
28% of total U.S. imports, Mexico said.
The Japanese Automobile Manufacturers Association also
opposed new tariffs, saying Japanese companies have cut exports
to the United States as they have boosted U.S. production of
medium- and heavy-duty trucks.
(Reporting by Ismail Shakil; Editing by Caitlin Webber and
Lincoln Feast.)