Trade Update: New Tariffs & Government Shutdown Impact
Effective October 1, 2025, importers face two major developments:
New Tariffs Announced by President Trump
On September 25, 2025, President Trump announced new tariffs via Truth Social, targeting key import categories:
- Pharmaceuticals: 100% tariff on branded and patented drugs unless the manufacturer is actively building a U.S. facility (defined as breaking ground or under construction).
- Furniture & Cabinets:
• 50% tariff on kitchen cabinets, bathroom vanities, and related products
• Additional 30% tariff on upholstered furniture due to market “flooding” concerns - Heavy Trucks: 25% tariff on imports, aimed at protecting U.S. truck manufacturers (Peterbilt, Kenworth, Freightliner, etc.) for national security purposes.
Impact for Importers: Expect increased landed costs, potential sourcing challenges, and supply chain disruptions. Importers should evaluate sourcing strategies and prepare for tariff mitigation options.
Government Shutdown Impacts Trade Operations
The federal government shutdown, which began October 1, adds further uncertainty for importers and exporters:
- Customs & Border Protection (CBP): Ports remain staffed and cargo continues to move, but administrative work (refunds, protests, tariff rulings) may slow down.
- Partner Government Agencies (FDA, USDA, EPA, etc.): Many staff are furloughed, which could delay reviews, inspections, and clearances for regulated cargo.
- Refunds & Duty Drawback: Processing of refunds, protests, and tariff exclusions may be delayed until funding resumes.
At Radius International, we are:
- Closely monitoring CBP and White House updates
- Helping clients navigate clearance delays with proactive communication and planning
- Providing tariff mitigation strategies and supply chain solutions, including bonded warehousing and alternate routings
Global trade doesn’t pause, and neither do we.
For questions about how these developments may impact your shipments, contact your local Radius representative.
