President Donald Trump on Thursday night announced a fresh wave of tariffs set to launch Oct. 1 taxing imports of heavy trucks, furniture and pharmaceuticals, citing national security purposes. Stocks were mixed, as some domestic manufacturers rose, while higher-end importers, including RH fell.
Trump on his Truth Social platform on Thursday announced a 25% tariff on foreign-made, heavy duty trucks.
"Therefore, our Great Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions," Trump wrote.
Peterbilt and Kenworth are made by Texas-based Paccar. Freightliner is owned by Daimler, but manufactured in the U.S. as Daimler North America. Mack has been a Volvo subsidiary since 2000, but also manufactures its trucks in the U.S.
Trump announced a 50% tariff on kitchen cabinets, bathroom vanities and associated products, as well as a 30% tariff on upholstered furniture.
"The reason for this is the large scale 'FLOODING' of these products into the United States by other outside Countries. It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process," he wrote.
Trump also announced a 100% tariff on any branded or patented pharmaceutical product, unless the company has started construction on a manufacturing plant in the U.S.
Paccar Leads Gains, Stocks Mixed
Paccar stock surged 5% Friday, rebounding above its 200-day moving average. PCAR shares had retreated 8% this year through Thursday.
Shares of Honda and Stellantis ticked lower. General Motors and Ford rose 1% and 3.4%, respectively. RH, formerly known as Restoration Hardware, fell more than 4%. Williams-Sonoma reversed from an early decline to rise slightly.
Wayfair rose 2.2% as JPMorgan on Friday placed it on "positive catalyst watch," expecting positive revisions to estimates in the coming quarters. The firm wrote that solid wage growth and positive existing-home sales should provide a boost for home goods retailers. JPMorgan has an overweight rating and an 82 price target on Wayfair, according to The Fly.
Kitchen cabinet makers American Woodmark and MasterBrand both surged about 6%. The two companies are merging, with the deal expected to close early next year.
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