Pharmaceutical and semiconductor industries face potential new tariffs, as stated by Trump, escalating the ongoing trade war.
The United States government is mulling over the imposition of new tariffs on imported pharmaceuticals and foreign semiconductors, as part of an effort to address supply chain concerns and potentially reduce drug prices.
According to recent reports, pharmaceuticals accounted for 60 percent of Swiss goods exports to the United States last year, making them a significant player in the US market. However, historically, tariffs on these products have been low or non-existent to avoid supply chain disruptions and shortages.
The administration is investigating pharmaceutical preparations, which currently rank as the most valuable imported consumer goods into the US, with announcements on potential tariffs expected within months. The intention is to identify measures that might reduce costs for consumers, although the exact tariff rates and implementation dates remain uncertain.
Regarding semiconductors, while specific new tariffs on foreign imports have not been detailed, there are ongoing tariff changes linked to trade policy that affect related sectors. The overall effect of 2025 tariffs has raised the US average effective tariff rate to about 19.7%, contributing to increased consumer prices and projected economic impacts such as reduced GDP growth and higher unemployment.
In a separate development, President Trump has signaled his intentions to announce new duties on foreign semiconductors soon. Meanwhile, he has also expressed his intention to raise the US tariff on Indian imports "very substantially" due to the country's purchases of Russian oil.
The proposed tariffs on pharmaceuticals are noteworthy as they could significantly impact the US market, given the heavy reliance on imported medicines. Trump has stated that upcoming tariffs on imported pharmaceuticals could reach 250 percent. Swiss officials are reportedly heading to Washington in a last-minute push to avoid punitive duties.
New US tariffs are due to take effect this week, with Brazilian products facing tariffs on Wednesday, and the European Union, Taiwan, and several other economies starting on Thursday. The tariff level for most products from the European Union will be 15% starting Thursday, after a deal was struck to avoid higher levies. However, products like pharmaceuticals, steel, aluminum, and lumber are being targeted separately by sector.
As the situation evolves, precise tariff rates and effective dates are pending further government announcements. The impact of these tariffs on global trade, consumer prices, and the economy remains to be seen.
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- The new tariffs on imported pharmaceuticals and foreign semiconductors under consideration by the US government could potentially impact the economy, including reducing GDP growth and increasing unemployment due to higher consumer prices.
- The imposed tariffs on imported goods from various countries, such as Brazilian products facing tariffs this week and the European Union starting from Thursday, could have significant repercussions on the global arts and culture sector, general news, and personal finance, as they affect trade and consumer prices.
- Wealth-management experts are closely monitoring recent policy-and-legislation discussions surrounding financial investments, as new tariffs on foreign semiconductors might create investment opportunities in the domestic technology sector.
- In the realm of politics and policy-and-legislation, the proposed tariffs face opposition from various economic powers such as Switzerland, which relies heavily on the US market for pharmaceutical exports and is pushing to avoid any punitive duties.
- The overall effect of the proposed tariffs on the business landscape could be substantial, potentially causing disruptions and changes in the flow of goods, particularly in sectors like finance, healthcare, and technology, as companies navigate new trade challenges and costs associated with these new policies.
