Trump Tariff: US President Donald Trump has said that he can put tariffs on pharmaceuticals by the end of this month. Also, the tariff will be announced soon on the semiconductor. These new rates will be levied with reciperook tariffs to be implemented from August 1.

Companies will be given one year time

While returning to Washington after attending the Artificial Intelligence Summit in Pittsburgh, Trump told the reporters, “Perhaps by the end of this month we can start with a low tariff.” Medicine companies will give one year or more time to make their factory in America. After this the tariff will be increased. Trump also revealed his plan to put tariffs on the semiconductor ie computer chips. He did not give much information about this. Just said that putting tariffs on chips is easier than applying tariffs on medicines.

Drugs imported in America will be expensive

In a cabinet meeting earlier this month, Trump said that he is planning to put 50 percent tariff on copper in the coming weeks. He will give the pharmaceutical companies one year to bring his factory back to America and after that it will increase the tariff. Trump has already announced an investigation of drugs under Section 232 of the 1962 Business Extension Act.

He argues that large -scale imports from abroad are a threat to national security. Trump’s tariff will affect pharmaceutical companies like Elli Lily & Co., Merc & Co. and Fizer Inc., which makes their medicines in other countries. This will also increase the expenditure on medicines for American consumers. Trump’s aim behind doing so is to promote American industries and increase production in their country.

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The US government may have given some electronic products exempted from tariffs i.e. import duty, but this relief is not going to last long. US Commerce Secretary Howard Lonik has clearly stated that this discount is just temporary and soon a special “semiconductor tariff” will be imposed on these products.

What did Commerce Secretary say?

Talking on the ABC channel’s show ‘This Week’ on Sunday, America’s Commerce Secretary Lonik said, “Many electronic items like smartphones, computers, solar cells, flat-panel TVs have been excluded from the tariffs right now, but all these products will be under semector tax in the next 1-2 months.” He said that America now wants to build these essential things like chips, flat panels and semiconductors in its country itself. Lonik insisted that we cannot be completely dependent on South East Asia.

It is a matter of national security

Lonik also made it clear that this is not an issue that can be resolved by negotiating with other countries. He said that these products now come under ‘National Security’. Meaning, it should now be made in America. They cannot be exempted from tariffs forever.

What is the thinking of Trump administration?

President Donald Trump and his team want factories to be made again in America, especially the goods related to medicines and technology. For this, companies are being forced to bring back the manufacturing by imposing tax on imports.

Which products are now exempted?

On Friday night, the US Customs Agency issued a notice stating that things like smartphones, computers, solar cells, TV displays, and storage devices are currently exempted from tariffs. But now it has become clear that this discount is temporary and tax may be applied again in the coming months.

Message to india

The tariff policy in the US has now directly connected to the National Security. For countries like India, it is an indication that in global trade, more ‘safe trade’ is coming more than ‘free trade’.

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