Richmond expert weighs in on latest wave of tariffs
VENN
RICHMOND, Va. (WRIC) — A Richmond economist is weighing in after several tariffs originally set to take effect on Wednesday were instead delayed by the White House.
Last week, President Donald Trump announced plans for tariffs on pharmaceuticals, bathroom vanities, kitchen cabinets and even foreign-made films. Some of these tariffs were set to begin Wednesday, Oct. 1 -- but officials have confirmed that's changed.
"It could change every single day," said Stephen Day, who directs the Center for Economic Education at Virginia Commonwealth University (VCU). "Consumers and producers are both in 'wait and see.'"
The most significant move was the delay of a 100% tariff on branded pharmaceuticals from companies not building facilities in America.
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"The people that are really going to be affected -- and are not going to like it -- are small and mid-sized pharmaceutical companies," Day said.
He said larger companies, however, may be able to avoid the penalties. For example, Pfizer reached a deal with the administration on Tuesday, Sept. 30. Under this agreement, Pfizer will invest in domestic manufacturing instead of facing tariffs.
"To a normal consumer, I’d say taxes make something more difficult to buy, they make it more expensive," Day said. "But these taxes are likely not to apply to you."
Meanwhile, the White House said a 25% tariff on imported kitchen cabinets and bathroom vanities is still moving forward, but will now begin Oct. 14.
"I think those are meant to help the industry in the United States," Day said. "That’s going to be more to try to help American producers. Consumers would be more likely to see an increase in prices."
The president also announced plans for a 100% tariff on all foreign-made films, but has not provided a timeline.
"You wouldn’t be able to see them in the theater as much, or streaming as much," Day said of what to expect from such a tariff.
Day noted that all of these changes are made by executive order, which means they could shift quickly.
