In a surprising move, President Trump has announced new tariffs on imports from several countries, leading to significant changes in international trade.
Harsh Tariffs on Imports from India
Trump has doubled the tariff on imports from India to 50%. This decision is attributed to India's ongoing trade with Russia. In response, India's Ministry of External Affairs called the U.S. actions "unfair and unjustified." It also emphasized that India has the right to meet its energy needs.
Pharmaceutical Tariffs
Trump also announced that initial tariffs on pharmaceutical imports could increase to 250%. This decision may significantly affect global drug manufacturers, particularly Indian and European companies exporting generic medicines to the U.S. Kalshi estimates an 83% likelihood that these tariffs will be implemented this year.
Semiconductor Imports Under Fire
The President announced a 100% tariff on all imported semiconductors, which could have a major impact on costs in the tech sector. However, Apple and Nvidia have reportedly been exempted due to their significant investments in the U.S. The market reaction to these announcements has been relatively muted.
Trump's recent tariff announcements highlight a hardline approach in international trade, raising concerns about the further implications for the global economy.
