Trump says U.S. to impose steep tariffs on pharm and chips

Donald Trump told CNBC on Tuesday that the U.S. will impose new import tariffs on pharmaceuticals and chips “within the next week or so”. He said the measures were designed to reduce reliance on foreign supply chains and bring production back to the United States.

In an interview with CNBC, Trump said the initial tariff on pharmaceuticals would be relatively small but would increase significantly.
"In one year, one and a half years, maximum, it's going to go to 150 percent, and then it's going to go to 250 percent because we want pharmaceuticals made in our country," he said.

The president also signalled similar measures for semiconductor imports, though exact figures and timelines were not disclosed.
"We'll be putting an initially small tariff on pharmaceuticals," he added, "but semiconductors and chips will also be addressed very soon."

Trump stressed that his tariff agenda is far from over, indicating more protectionist measures could follow.
"We're just getting started," he said.

These comments came shortly after the administration imposed new duties on a broader list of imports from various countries. They also followed a weaker-than-expected U.S. jobs report for July. The Labour Department revealed not only a lower-than-forecast jobs gain but also downward revisions to June and May employment data, casting doubts on the strength of the U.S. economic recovery.

The pharmaceutical industry in the U.S. relies heavily on imports, with India and China among the major suppliers of generic drugs and active pharmaceutical ingredients (APIs). Similarly, the U.S. semiconductor industry is dependent on overseas manufacturing, particularly in Taiwan and South Korea.

Analysts say the proposed tariffs could disrupt supply chains, raise consumer prices, and trigger retaliatory trade measures unless carefully implemented. A White House spokesperson declined to comment further on specifics of the tariff rollout when contacted.

Copied