Trump stepped towards putting tariffs on semiconductor and medicines

US President Donald Trump has recently announced a plan to put tariffs on semiconductor and pharmaceutical products, while indicating temporary relief to the automobile sector. This step has been taken at a time when the US is already facing business tension with many countries and the trade war with China is at its peak.  On 1 April 2025, the Trump administration has initiated an inquiry on the import of these products on the basis of national security on the import of these products under Section 232 of the "Trade Examination Act, 1962". This step makes the intention of America to promote domestic production and reduce foreign dependence.

Tariff plan on semiconductor & pharma products

The Trump administration has initiated an investigation into national security effects associated with the import of semiconductor, chip -making equipment and drug materials. It is indicating that tariffs can be imposed on these products in the coming days, which can lead to another major earthquake in global trade. 

Temporary relief to automobile sector

Trump has indicated to relieve the automobile sector. He said that some auto companies are considering helping, which are now asking for parts from Canada, Mexico and other countries, but soon they will start making them in America itself. 

Concern in global markets

Potential tariffs on semiconductor and pharma products have increased concern in global markets. The US stock market saw a boom on Monday after Trump's statements. 

Trade War with China

Trump has recently increased duty on imports from China by 145%. In response, China also imposed 125% tariff on American products and warned that if the US did not step back, they would "fight till the end." 

Major changes in America's trading policies

These steps of Donald Trump indicate major changes in America's trading policies. The signs of plans to install tariffs on semiconductor and pharma products and temporary relief to the automobile sector may increase instability in global trade. It will be important to see how these policies affect the US and the global economy.