American manufacturers are warning that the Trump Administration’s latest tariff hikes on pharmaceuticals, trucks, and furniture could stall manufacturing investment in the U.S., because the country relies on imported goods to operate its factories at full production levels.
President Trump announced the new import taxes on Thursday night in a social media post, saying they will cover imported branded or patented pharmaceuticals, heavy-duty trucks, and home goods such as kitchen cabinets and upholstered furniture.
In reaction, the National Association of Manufacturers (NAM) today said the move could stall manufacturing investment in the U.S. That announcement was particularly significant because the NAM typically supports the business policies of Republican administrations, and was a strong voice supporting Trump’s “Big Beautiful Bill.”
“Manufacturers are working to increase capacity in the United States—and domestic production of robotics and industrial machinery can enhance both our industrial might and our national security. However, tariffs on critical manufacturing inputs would significantly increase costs on equipment and machinery on factory floors across the country, which could in turn stall investment in new plants and equipment right here at home at a time when manufacturers want to help President Trump create more U.S. manufacturing output and jobs,” NAM President and CEO Jay Timmons said in a release.
“The challenge facing the United States today is that our domestic industry can produce at most 84% of the inputs manufacturers need to build, modernize and operate our facilities and to increase production and output. That is true even if every manufacturer in the country is working at full capacity. That means that, at an absolute minimum, 16% of critical manufacturing inputs must be imported to manufacture more here in the U.S. That’s why manufacturers have offered practical pro-growth solutions to bring in these essential inputs without adding cost burdens, while rewarding manufacturers that invest, expand and create new jobs at home,” Timmons said.
