United States receives South Korea's statement protesting drug import taxes
Marching On: Trump's Tough Stance on Tariffs Impacts Domestic and Foreign Industries
In a bold move to bolster domestic manufacturing, U.S. President Donald Trump has announced a wave of tariffs across various sectors. The impact of these tariffs on popular American-made goods in China, as well as other industries, has raised eyebrows worldwide.
Here's a lowdown on the sectors feeling the heat:
Autos- The tariff war began on April 3, 2025, with a 25% import tax on nearly all vehicles, followed by key auto parts tariffs on May 3, 2025[3][5].- Vehicles manufactured domestically receive a break, with a 3.75% tariff rebate in the first year and a 2.5% rebate in the second year[3].- Initially, imports from Canada and Mexico, provided they meet the USMCA standards, are exempt[3]. UK-made cars have also scored some exemptions[3].
Pharmaceuticals- While plans to impose tariffs on pharmaceuticals to boost domestic production are in the works, the specifics, including timeline and details, remain elusive[2][3].- The U.S. heavily relies on imports for active pharmaceutical ingredients, with over 70% sourced from India, the EU, and China[2].- If enacted, these tariffs could significantly affect major drugmakers, potentially resulting in higher drug prices[4].
Semiconductors (Chips)- Trump aims to levy sector-specific tariffs on semiconductors, particularly advanced logic chips, although exact rates and implementation dates are yet to be declared[2][4].- The goal is to stimulate domestic production for reasons of national security and competitiveness[2][4].- Previous actions under the Biden administration included doubling tariffs on certain Chinese semiconductors to 50%, serving as a stepping stone for further tariffs[4].
Stay tuned as these tariffs continue to unfold, shaking up industries worldwide.
Sources:[1] Reuters (2025). "U.S. President Donald Trump shows a signed document as he signs executive orders and proclamations in the Oval Office at the White House in Washington, D.C. on May 5, 2025. [REUTERS/YONHAP]"[2] JoongAng Ilbo (2025). "Tariff wars to hit popular U.S.-made drugs in China, regulator data shows."[3] JoongAng Ilbo (2025). "As tariffs slam the world, one Korean industry slides under the radar."[4] JoongAng Ilbo (2025). "Trump says he will introduce 25% tariffs on autos, pharmaceuticals and chips."[5] [email protected], www.khidi.or.kr (2025). Translated from the JoongAng Ilbo using generative AI and edited by our website staff.
- The tough stance on tariffs by U.S. President Donald Trump has sparked debate among political leaders and industry experts about the potential impact on various business sectors, including autos, pharmaceuticals, and semiconductors.
- In the auto industry, a 25% import tax on nearly all vehicles, followed by key auto parts tariffs, has been announced, with domestic vehicles receiving a tariff rebate to promote domestic manufacturing.
- In the pharmaceutical industry, the government has announced plans to impose tariffs to boost domestic production, but the specifics remain unclear, raising concerns about potential higher drug prices and supply chain disruptions.
- The semiconductor industry is also facing potential tariffs, with the goal of stimulating domestic production for reasons of national security and competitiveness, although the specifics, including rates and implementation dates, are yet to be declared.
