Trump Signals Upcoming Tariffs on Pharmaceuticals and Semiconductors Within Days
Daily Briefing: Trump’s India Ventures and the Trade Tariff Standoff
Trump President Donald Trump said that US Pharma tariffs and semiconductor imports will to be revealed "within the next week or so," as the administration is preparing to target the most important industries in its efforts to restructure the world trade policy.
"We'll be putting a initially small tariff on pharmaceuticals, but in one year -- one and a half years, maximum -- it's going to go to 150% and then it's going to go to 250% because we want pharmaceuticals made in our country," Trump stated Tuesday in an interview with CNBC.
He didn't specify the tariff rate that would be in place for pharmaceuticals. Trump stated earlier this month that the phased tariff escalation to 250%
Trump has also announced that he will to declare semiconductor tariffs and chips within the "next week or so," but he did not provide additional details.
The United States has been conducting an assessment of national security concerns in the pharmaceutical industry and the industry is preparing for potential specific tariffs for the sector. The administration has not yet announced when the findings of that review will be released.
A framework agreement between United States and the EU stipulates that the tariffs on semiconductors and pharmaceuticals are currently at zero. However, in the event that they are raised by the United States raises tariffs following a Section 232 investigation into its imports the tariffs will be capped at 15 percent.
Trump disclosed the timeline of tariffs just days after signing an executive order that imposed the new U.S. duties on a variety of imports from countries as well as some trading partners facing significant hikes. Taiwanese items are scheduled to see an update on tariffs of 20% beginning this week. However, this is lower than the 32% rate Trump was previously threatening in his 2 April "liberation day" levies.
Trump's comments during a discussion on CNBC early Tuesday highlighted the fact that his tariff plan is not yet complete.
In the same interview that the tariffs on domestic manufacturing boost could eventually rise to 250 percent. He previously stated that the tariffs could reach 200%..