Naturepedic, a mattress and furniture company based outside Cleveland, has been planning to introduce an upscale upholstered headboard late this year or early in 2026.

But President Donald Trump has thrown those plans into disarray. On Thursday night, the president announced on social media that he was slapping a 30 per cent tax on imported upholstered furniture. Naturepedic ships its headboards from India and Vietnam.

So what is the company to do?

“Do we continue forth ... and hope for the best?'' asked Arin Schultz, Naturepedic's chief growth officer. “Or do we feel like we're priced out and drop it altogether?'' And if Naturepedic decides to continue with the rollout, “do we eat the cost or pass it on'' to customers?

Across the United States, lots of executives were asking themselves similar questions as they came to work on Friday morning.

Upholstered furniture, after all, wasn't the only import in Trump's crosshairs Thursday night. In addition, the president posted on his Truth Social platform, he's imposing import taxes – tariffs – of 100 per cent on pharmaceutical drugs, 50 per cent on kitchen cabinets and bathroom vanities and 25 per cent on heavy trucks.

And he's not waiting around to do it. The tariffs, he said, would take effect on Wednesday.

Trump also raised eyebrows by justifying the levy on vanities and sofas as necessary for national security. “It's hard to see how a kitchen cabinet industry is essential to winning the next war,'' said Mary Lovely, senior fellow at the Peterson Institute for International Economics.

Thursday's social media barrage was just the latest in Trump's push to upend American trade policy, which for decades pushed for lower trade barriers around the world.

In place of an open market, Trump has built a tariff wall around the US economy, slapping double-digit taxes on imports from almost every country on earth and targeting products (steel, aluminium, autos) with specific taxes of their own.

Trump says the tariffs will protect US industries from foreign competition, encourage companies to bring production to the United States and raise money for the US Treasury.

They certainly have become a moneymaker for the federal government. Since fiscal year 2025 began last Oct. 1, the US Treasury has collected USD 172 billion in customs duties, up by USD 96 billion (or 126 per cent) from the same period in fiscal 2024. Still, tariffs account for less than 4 per cent of federal revenue.

Businesses, lawyers and trade analysts are still wondering what to make of Trump's Thursday night tariffs. “We've only seen the President's Truth Social posts,” said Dan McCarthy, principal in McCarthy Consulting and a former official with the Office of the US Trade Representative in the Biden administration. “We need to see the details.''

For example, Naturepedic isn't sure whether the 30 per cent levy on upholstered furniture will be stacked atop a separate and earlier 50 per cent tariff on goods from India.

Here's what we know so far:

Luring drug production back to the US

The president has been threatening tariffs of 200 per cent or more on pharmaceuticals. “It's to force Big Pharma to move jobs and put new factories into the US,'' said Barry Appleton, a senior fellow at the Centre for International Law at New York Law School. “So it's industrial policy.”

In recent decades, drugmakers have moved many operations overseas – to take advantage of lower costs in China and India and tax breaks in Ireland and Switzerland.

The COVID-19 experience – when countries were desperate to hang onto their own medicine and medical supplies — underscored the dangers of relying on foreign countries in a crisis, especially when a key supplier is America's geopolitical rival, China.

The stock prices of pharmaceutical companies actually rose after Trump's announcement Thursday night. The 100 per cent tariff was lower than it might have been. And Trump said the tariffs would not apply to companies “breaking ground” or being “under construction.”

Several big drugmakers like Merck & Co. Inc., Eli Lilly and Co. and Johnson & Johnson have already announced US expansion plans.

In his tariff announcement, Trump did not mention generic drugs, which account for the vast majority of US prescriptions.

Still, analysts warn, the tariffs are likely to mean higher prices. “The people who are punished the most are Americans who need the drugs so badly, especially those who don't have full health care plans,” Appleton said. He called the tariff a “simplistic but drastic” approach to a complicated problem. “We don't know how it's going to go, but it doesn't look like it's going to do well for consumers,” he said.

A blow to homeowners and the housing market

The tariffs on kitchen cabinets, bathroom vanities and upholstered furniture come as the White House is investigating whether imports of lumber and other wood products pose a threat to US national security. A report on that investigation is due Nov. 26 and could mean more and broader tariffs.

The levies are likely to hurt big furniture exporters China and Vietnam.

But they're also likely to drive up the cost of new homes and apartments and of do-it-yourself redecorating projects.

Homeowners are already scaling back due to high costs and a shaky economy. According to the Labour Department, the price of living room, kitchen and dining room furniture has risen nearly 10 per cent over the past year.

“Adding significant costs to furniture, cabinets, vanities, and building materials will make the American dream of owning a home significantly more expensive,” said Jonathan Gold, the National Retail Federation's vice president of supply chain and customs policy. “The speed at which these tariff announcements are made and implemented continues to wreak havoc on retail supply chains. The uncertainty makes it difficult for retailers to properly plan and mitigate the impact of tariffs.”

A message to Mexico?

Charles Clevenger, a supply chain specialist at the consultancy UHY, said tariffs on pharmaceuticals make sense because so much production has shifted away from the United States to Europe and Asia. Likewise, North Carolina and other states in the American South have also lost furniture factories to cheaper competitors in China.

But he was surprised by the tariffs on heavy trucks because “we do have a rather robust industry'' – with manufacturers like Paccar (parent company of Peterbilt and Kenworth).

But Appleton at New York Law School suspects the tariff is aimed at Mexico, where many heavy trucks are made. The US-Mexico-Canada Agreement, a trade deal negotiated in Trump's first term, is coming up for negotiation. “I don't think that (the tariff) was done by accident, Appleton said. “They wanted to put some more pressure on the Mexicans” to make concessions in the talks.

Using Section 232 of the Trade Expansion Act of 1962, Trump had launched investigations into whether imports of pharmaceuticals, lumber and heavy trucks posed a threat to US national security.

He'd justified his broader tariffs another way: by declaring national emergencies under a 1977 law. But two courts have ruled that Trump overstepped his authority by invoking the International Emergency Economic Powers Act (IEEPA) to impose import taxes. The Supreme Court is hearing the case on appeal.

Robert Lawrence, a professor of International trade and investment at Harvard University, said that using Section 232 gives the president a Plan B if the courts strike down his IEEPA tariffs. “He now has insurance and shows that he's going to be able to get away with raising tariffs, even if he loses that case.”

But Ted Murphy, co-leader of the trade practice at the Sidley Austin law firm, said: “It's hard to discern much of a plan ... What the administration does is they identify a problem and then the solution is a big tariff. The question is whether that's really as nuanced or strategic as it could be. There could be a strategy, but it's hard to discern from a tweet.''