President Trump announced a new round of tariffs yesterday, which are set to take effect on October 1st. Details include…
1 – A 100% tariff will be imposed on imported “branded or patented” pharmaceuticals. This duty will be waived for companies that are actively building a drug manufacturing facility in the United States.
2 – A 25% tariff will apply to all “heavy” or “big” trucks manufactured outside the U.S.. The announcement noted this is to protect domestic manufacturers from foreign competition.
3 – A 50% tariff will be placed on imported kitchen cabinets, bathroom vanities, and related products.
4 – A 30% tariff will be applied to upholstered furniture imports.
Let me leave you with this…
Industry analysts have warned that the high tariffs, especially on pharmaceuticals, could lead to increased costs for consumers. The American Trucking Association also expressed concern that the truck tariff could raise the price of new vehicles, affecting trucking company fleets.
Major stock indexes in the U.S. retreated after the announcement yesterday, with drug and furniture stocks seeing declines. According to financial news outlets, the new tariffs signify a broadening of the administration’s tariff strategy to target more consumer and industry products.
The Supreme Court agreed this month to hear arguments in November on the administration’s bid to save its sweeping global tariffs, setting the stage for a final ruling on the president’s economic agenda. The tariffs, which were dealt a string of defeats in the lower courts, are set to remain in place until the case is decided.
Meanwhile back at the ranch, inflation rose another 0.3% in August as measured by the Consumer Price Index. But wait, there’s more.
Consumer Sentiment as measured by the University of Michigan’s Consumer Survey fell in September to 55.1% down from 58.2 in August. That’s right. You guessed it.
More good news.
This is my way of suggesting that all of you should be cautious. We aren’t out of these woods by a long shot.
Given the length of supply chains and the timing inherent in the system, the majority of pricing increases have not hit our businesses yet. Your monthly financial statements are always important, and more so now.
Do whatever is necessary to maintain your margins. If there’s any fat in your organization, get out a chainsaw. And above all, be conservative.
If you’re planning any new ventures or anything that will substantially increase the risks in your organization, put your plans on hold. This economy could turn south in a heartbeat.
I don’t want any of you out on a limb if the music stops.
When you have questions, you know my number. We’re here to help.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
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