In a late-night series of posts on September 25, 2025, President Donald Trump unveiled a sweeping set of new tariffs that extend far beyond the traditional battlegrounds of steel and aluminum. The announcements targeted kitchen cabinets, upholstered furniture, heavy trucks, and most dramatically branded pharmaceuticals. The measures, set to take effect October 1, mark one of the most aggressive tariff expansions in recent U.S. history. While the administration frames these moves as a defense of American manufacturing and national security, the implications for industries, consumers, and small businesses are profound.
The New Tariff Measures
Trump’s announcement outlined three immediate categories of goods facing new duties: a 50 percent tariff on kitchen cabinets and bathroom vanities, a 30 percent tariff on upholstered furniture, and a 25 percent tariff on heavy trucks and truck parts. These measures were justified as a response to what the administration described as “flooding” of the U.S. market by foreign producers, particularly in Asia.
The most striking development, however, was the imposition of a 100 percent tariff on imported branded or patented pharmaceuticals. The administration carved out an exemption for companies actively building U.S. manufacturing plants, signaling a clear attempt to force multinational drugmakers to onshore production. Given that the U.S. imported more than $230 billion in pharmaceuticals in 2024, the scale of this policy shift is unprecedented.
Industry Impacts
The immediate winners of the furniture and cabinetry tariffs are domestic manufacturers, particularly in regions like North Carolina and the Midwest, where furniture production has long been a cornerstone industry. Yet importers, retailers, and consumers are bracing for higher costs. Homebuilders and renovators, already grappling with inflationary pressures, will face steeper prices for cabinetry and furniture, potentially slowing housing starts and remodeling projects.
In the trucking sector, U.S. manufacturers such as PACCAR and Navistar may gain a competitive edge, but logistics companies and fleet operators will see costs rise. Higher truck and parts prices are likely to cascade into freight rates, raising shipping costs across the economy.
The pharmaceutical tariffs represent a seismic shift. U.S.-based multinationals with domestic plants stand to benefit, while foreign producers such as AstraZeneca, Bayer, and Novartis face steep barriers unless they invest in U.S. facilities. Generic drugmakers may see a surge in demand as insurers and patients seek cheaper alternatives, but the risk of short-term shortages looms large, particularly in oncology and specialty care. Insurers, Medicare, and Medicaid will face billions in added costs, with patients ultimately bearing the burden through higher premiums and out-of-pocket expenses.
Broader Economic Exposure
These new measures come on top of an already expanding tariff regime in 2025. Earlier this year, the administration extended Section 232 tariffs to automobiles and auto parts, imposed duties on copper products, and expanded steel and aluminum tariffs to cover hundreds of derivative goods. Investigations into timber and pulp imports are ongoing, raising the prospect of further duties that could hit construction, paper, and packaging industries.
The suspension of the de minimis exemption for low-value imports has also reshaped e-commerce, forcing platforms like Amazon, Shein, and Temu to navigate new compliance costs. Together, these policies represent a fundamental reshaping of U.S. trade, with ripple effects across construction, chemicals, agriculture, logistics, and retail.
The Small Business Squeeze
While large corporations may have the resources to adapt, small businesses are among the hardest hit. They represent the vast majority of U.S. importers but lack the capital buffers, credit access, and supply chain flexibility of larger firms. For a small importer, a 10 percent tariff can erase annual profits; a 50 percent duty can be existential.
Small furniture retailers, kitchen remodelers, and independent pharmacies face immediate cost pressures. Many cannot stockpile inventory ahead of tariff deadlines or pivot quickly to new suppliers. Banks, wary of volatile cost structures, may tighten credit, compounding the challenge. For small pharmacies, the pharmaceutical tariffs could be devastating, as they struggle to source affordable branded drugs while competing with larger chains that can negotiate better terms.
Strategies for Adaptation
Despite the challenges, small businesses are not without options. Experts recommend a multi-pronged approach:
- Conducting supply chain audits to identify tariff exposure.
- Diversifying sourcing, including exploring USMCA partners like Canada and Mexico.
- Managing cash flow carefully, balancing inventory with tariff risk.
- Exploring tariff engineering, such as importing semi-finished goods that fall under lower-duty categories.
- Communicating transparently with customers about price adjustments.
- Joining industry associations to lobby for exemptions and share best practices.
Some firms may also pivot toward product innovation, substituting materials or adding value-added services to offset higher costs. Others may find opportunity in the reshoring push, particularly in construction and manufacturing tied to new U.S. pharma plants.
What Small Businesses Can Do Before October 1st
1. Audit Your Exposure Immediately
- Review your product lines and inputs to see which fall under the new tariff categories (cabinets, furniture, trucks/parts, branded pharmaceuticals).
- Ask suppliers directly if they’re affected and how they plan to handle cost increases.
- Identify indirect exposure even if you don’t import directly, your distributor may pass costs on to you.
2. Secure Inventory Where Possible
- If cash flow allows, stockpile key goods or inputs before October 1 to lock in pre-tariff pricing.
- Prioritize high-margin or fast-moving items that will be hardest to substitute later.
- Confirm insurance coverage if you’re holding more inventory than usual.
3. Diversify Suppliers Quickly
- Explore USMCA partners (Canada, Mexico) or other tariff-free sources.
- Reach out to domestic suppliers even if unit costs are higher, you’ll gain stability and faster lead times.
- Compare not just price, but shipping lead times and contract flexibility.
4. Manage Cash Flow Proactively
- Negotiate extended payment terms with suppliers to ease the upfront burden.
- Talk to your bank or credit union now about short-term financing options don’t wait until tariffs hit your margins.
- Revisit budgets and trim discretionary spending to preserve liquidity.
5. Adjust Pricing & Customer Messaging
- Plan for gradual price adjustments rather than a sudden spike.
- Communicate transparently with customers: frame increases as a result of government policy, not business mismanagement.
- Offer bundles, loyalty discounts, or service add-ons to soften the impact.
6. Explore Tariff Engineering & Compliance
- Work with a customs broker to ensure accurate HS code classification misclassification could trigger penalties.
- Consider importing semi-finished goods or parts that fall under lower-duty categories, then assembling domestically.
- Monitor for possible exemptions or exclusions that may apply to your products.
7. Collaborate & Advocate
- Join trade associations or chambers of commerce to push for relief or carve-outs.
- Partner with other small businesses to consolidate shipments and reduce per-unit freight/tariff costs.
- Stay plugged into government announcements tariff lists can expand or shift quickly.
Takeaway
Between now and October 1, small businesses should act fast:
- Audit exposure, secure inventory, and diversify suppliers to buy time.
- Protect cash flow and communicate clearly with customers.
- Leverage compliance strategies and industry networks to reduce risk.
The businesses that move now even with small steps will be in a stronger position to absorb the shock and adapt once tariffs take effect.
How Peacock Tariff Consulting Can Help Businesses Navigate the New Tariffs
With the October 1 implementation date looming, many companies are scrambling to understand how the new tariffs on cabinets, furniture, trucks, and pharmaceuticals will affect their operations. Peacock Tariff Consulting is positioned to provide immediate, practical support in several critical areas:
1. HS Code Classification & Compliance
- Ensure products are classified correctly under the Harmonized System to avoid overpayment or penalties.
- Identify opportunities where alternate classifications may reduce tariff exposure.
2. Tariff Engineering & Supply Chain Strategy
- Explore compliant ways to restructure imports for example, shifting from finished goods to semi‑finished components that fall under lower‑duty categories.
- Advise on sourcing alternatives in USMCA countries or tariff‑free jurisdictions.
3. Cost Modeling & Scenario Planning
- Build tailored models showing how the new tariffs will affect landed costs, margins, and pricing.
- Provide executives with clear “best case / worst case” scenarios to guide decision‑making before October 1.
4. Inventory & Cash Flow Guidance
- Help businesses decide whether to accelerate shipments before the tariff deadline.
- Advise on balancing stockpiling with cash flow constraints.
5. Sector‑Specific Expertise
- Furniture & Cabinetry: Guidance on sourcing shifts and compliance with wood product regulations.
- Trucking & Logistics: Strategies to mitigate higher equipment costs and freight rate increases.
- Pharmaceuticals: Support in navigating exemptions for companies building U.S. plants, and in assessing generic vs. branded sourcing options.
6. Executive Communication & Advocacy
- Prepare board‑ready briefing notes and slide decks that distill complex tariff changes into actionable insights.
- Connect clients with trade associations and government channels to pursue exemptions or relief.
The Bottom Line
Trump’s September 25th tariff package is broad, fast‑moving, and disruptive. For small and mid‑sized businesses especially, the difference between absorbing the shock and seizing opportunity lies in expert guidance and rapid action. Peacock Tariff Consulting provides both helping clients stay compliant, protect margins, and adapt supply chains before the October 1 deadline.
Conclusion
Trump’s latest tariff announcements underscore a broader strategy of economic nationalism that is reshaping global supply chains. While domestic manufacturers in furniture, cabinetry, trucks, and pharmaceuticals may benefit, the broader economy faces higher costs, potential shortages, and inflationary pressures. Small businesses, in particular, are caught in the crossfire, struggling to adapt to sudden policy shifts that can upend their financial stability.
The long-term outcome may be a more domestically anchored industrial base, but the transition will be painful. For now, the message is clear: tariffs are not a temporary negotiating tactic but a central pillar of U.S. trade policy. Businesses of all sizes must prepare for a future where tariff volatility is the norm, not the exception.