Octariffest – New Tariff Hikes, Canada’s Quiet Retreat, and China’s Maritime Retaliation
As September wraps up and we head into October, President Trump announced new tariff escalations, with some to go into effect in October. I’m dubbing it Octariffest. It’s not as fun as Octoberfest, but there are restrictions on the amount of fun allowed in blogs about international shipping, so it’s the best I can do.
Furniture imports, of particular interest to Universal Cargo customers because we help so many import furniture, are among the products targeted for tariff hikes in October and beyond. New tariff announcements also target pharmaceuticals, movies, and heavy trucks.
Meanwhile, Canada’s Prime Minister Mark Carney quietly eliminated way more counter-tariffs on U.S. goods than he announced last week, and China responded to U.S. port fees on Chinese-built and -operated ships with regulatory changes to penalize and restrict ships of countries that target its maritime industry. Yes, the latter would seem specifically targeted on the U.S., with the China ship fees at U.S. ports scheduled to go into effect on October 14th.
Let’s get into some quick breakdown of the key developments.
?️ Furniture Tariffs
Let’s start with the tariff hikes most pertinent to the largest segment of Universal Cargo clients: the furniture tariff hikes.
Aldgra Fredly reported it nicely in the Epoch Times:
President Donald Trump signed a proclamation on Sept. 29 imposing a 10 percent tariff on imports of softwood timber and lumber, along with a 25 percent duty on imported kitchen cabinets, bathroom vanities, and upholstered furniture.
The tariffs will take effect on Oct. 14, with certain imports facing higher rates next year, according to the proclamation.
The duty on upholstered wooden products will rise to 30 percent, while rates on kitchen cabinets and vanities will increase to 50 percent in January 2026, affecting only imports from countries without U.S. trade deals.
When announcing the furniture tariff hike on Truth Social, President Trump specifically cited North Carolina having lost furniture business to China.
In order to make North Carolina, which has completely lost its furniture business to China, and other Countries, GREAT again, I will be imposing substantial Tariffs on any Country that does not make its furniture in the United States. Details to follow!!! President DJT
As with other tariffs, this furniture one is meant to support and increase domestic production. Of course, it has at least the dual purpose of helping to induce trade deals to be reached and completed as well.
? Heavy Truck Tariff on October 1st
Another October tariff we’ll see is a 25% one on heavy trucks. It goes into effect on the 1st.
Here’s what President Trump wrote when announcing it on Truth Social:
In order to protect our Great Heavy Truck Manufacturers from unfair outside competition, I will be imposing, as of October 1st, 2025, a 25% Tariff on all “Heavy (Big!) Trucks” made in other parts of the World. 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. We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!
? Movie Tariffs
President Trump added a Hollywood twist to his tariffs. He announced a 100% tariff on all movies made outside the United States.
With this one being less impactful for Universal Cargo customers, I won’t spend much time on it. However, here’s what President Trump wrote on Truth Social when announcing this one just minutes before posting about the furniture tariff:
Our movie making business has been stolen from the United States of America, by other Countries, just like stealing “candy from a baby.” California, with its weak and incompetent Governor, has been particularly hard hit! Therefore, in order to solve this long time, never ending problem, I will be imposing a 100% Tariff on any and all movies that are made outside of the United States. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN! President DJT
This tariff does stand out from others in that movies is a rare area where America has a trade surplus. When and how this tariff will be imposed is unclear. It could also face legal challenges.
? Pharma Tariffs: 100% Duties Unless Building in America
Tariffs on pharmaceuticals is also less likely to be directly impactful for most businesses that ship with Universal Cargo, but it’s worth touching on as part of Octariffest since it’s to go into effect October 1st. President Trump’s new pharma tariff is 100% on branded and patented drugs, except if the manufacturer is actively breaking ground or under construction on a U.S. facility.
While President Trump announced the October timing of the tariff on September 25th, he’s been talking about the pharma tariff for months, so it shouldn’t come as a surprise to anyone in the industry. In fact, it’s been effective in creating investment in U.S. pharmaceutical facilities, as Andrew Moran outlined examples in an article for the Epoch Times:
Over the past several months, drugmakers have committed to billions of dollars in new U.S. manufacturing.
…
Eli Lilly has thus far announced four new U.S. sites this year, including a new $6.5 billion facility in Texas, unveiled earlier this week. The latest plant will manufacture active pharmaceutical ingredients and is expected to be operational within five years.
This announcement came shortly after the company confirmed plans to construct a $5 billion manufacturing facility in Virginia.
Merck has unveiled a series of multibillion-dollar U.S. manufacturing investments aimed at strengthening domestic production, with major projects underway in Delaware, New Jersey, and North Carolina.
Johnson & Johnson also announced a $55 billion investment in U.S. manufacturing, technology, and research and development over the next four years. This represents a 25 percent increase from the previous four-year cycle, the company said.
? Canada’s Quiet Retreat: Carney’s Retaliatory Tariffs Almost Completely Scrapped
Here’s perhaps the best part of Octariffest: pretty much all of Canada’s retaliatory tariffs are getting axed. At the very least, it’s good news for exporters shipping to Canada.
Prime Minister Mark Carney announced in August that Canada would remove retaliatory tariffs on U.S. goods “specifically covered under CUSMA.” Yes that’s true, but for some it feels like a lie by omission. An order-in-council published August 29 revealed nearly all counter-tariffs—whether sectoral and non-sectoral—were dropped. That includes retaliatory tariffs on non-CUSMA-compliant goods, as reported by Kate McKenna in a CBC News article and Jennifer Cowan in the Epoch Times.
Even though it was the end of August the order-in-council was published, it’s not until now at the end of September that it’s getting press. Maybe it’s a stretch to count Canada’s eliminated reciprocal tariffs in Octariffest, but since Octariffest is something I just made up, I’ll count it.
In the CBC article, McKenna writes:
A spokesperson for Finance Minister François-Philippe Champagne said the government’s primary goal is to advance trade talks with the United States.
“The government was elected to negotiate a strong deal — not just any deal, but a good deal that protects Canadian workers and industries, advances Canada’s economic priorities and puts our industrial might to good use,” said the spokesperson, John Fragos, in a statement.
“This has required providing and adapting varying trade mechanisms to better support Canadians in response to shifting trade patterns.”
The government’s approach on trade has been criticized by Conservative Leader Pierre Poilievre, who has accused the prime minister of making “generous concessions” to the U.S. president without getting anything in return.
It’s clear the U.S. has more leverage than Canada does when it comes to trade negotiations.
? China Strikes Back with Port Fees and Access Restrictions
In response to the U.S. Trade Representative’s fees on Chinese built and operated ships that goes into effect on October 14th, China made regulation revisions to allow retaliatory measures. Here are things American shippers could see happen:
- Special fees on U.S. vessels
- Restricted port access
- Barred access from China-related maritime data
Premier Li Qiang approved the measures. They are now in effect and useable by China should they choose to use them. While it seems clear the intent is to have these actions available for use against U.S. ships and maritime organizations, China could use them more broadly.
Trade negotiations are still active between the U.S. and China. We likely haven’t seen the final moves from China or the Trump Administration before a final deal is reached.
Conclusion
Octariffest’s wave of tariffs, maritime, and trade activity is just the latest actions in the shifting global trade picture. President Trump’s aggressive tariff announcements on furniture, heavy trucks, pharmaceuticals, and film combined with Canada’s quiet concessions and China’s regulatory move for maritime retaliation sets the stage for a interesting fourth quarter in international shipping and global trade news.
The Trump Administration’s trade policy strategy has impacted trade patterns this year, done some bolstering of domestic manufacturing, and induced trade negotiations and deals. However, it has also brought uncertainty to shippers. We’ve seen tariff costs go way up and freight rates drop low. One thing we are certain of is the ride isn’t over yet. Here at Universal Cargo, we’re keeping an eye on it all to help businesses import and export goods as smoothly as possibly.
