Trump’s Latest Tariffs Raise More Questions. Investors Need to Stay Alert.

The impact of the latest pharmaceutical tariffs could be limited. Dan McCarthy, former senior staff member at the U.S. Trade Representative’s office who now advises small- to midsize businesses as a principal at McCarthy Consulting, sees tariffs as leverage to pressure companies to build in the U.S. to get a lower tariff rate or exemption.

Similar confusion persists in other sectors. While the U.S. hasn’t yet unveiled its investigations into lumber and timber, Trump unveiled tariffs on furniture—a derivative product. “A big question is where tariffs land on lumber and timber given how widespread their use is for construction and housing and domestically-produced furniture and the overall concerns about inflation and housing costs,” McCarthy says.

Even if certain products aren’t hit with tariffs in the first round, analysts caution that the administration has been expanding the list of goods targeted—an approach that differs from those of past administrations, including Trump’s first.

“They have an inclusion process so companies can go to the Commerce Dept. and suggest the U.S. put a tariff on a product that could be a competitor’s,” McCarthy said. “Companies could have to get ready for a two-step process where they are applying for a refund if the Supreme Court strikes down the IEEPA tariffs but also a new round of tariffs.”

https://www.barrons.com/articles/trump-tariffs-inflation-consumers-investing-efb216f3?st