Which Goods & Items are Exempt from Trump’s New Tariffs?
The world of international trade has been witnessing a lot of turbulence in recent times, with various countries imposing tariffs on each other’s goods. The latest development in this regard is the announcement of reciprocal tariffs by US President Donald Trump on Wednesday, April 2. While the tariffs have sent shockwaves across the globe, there are certain commodities that have been kept out of the ambit of these tariffs. In this blog post, we will explore the list of goods and items that are exempt from Trump’s new tariffs.
Pharmaceuticals: A Major Exemption
One of the significant exemptions from the tariffs is pharmaceutical products. According to a report by Moneycontrol, the pharma industry is expected to benefit from this exemption, as it comprises nearly $9 billion worth of exports from India. The exemption is particularly significant for India, which is a major producer of generic drugs and is expected to benefit from the relaxation in tariffs.
Bullion and Energy: Other Key Exemptions
In addition to pharmaceuticals, bullion (physical gold and silver of high purity) and energy products have also been exempt from the tariffs. This means that investors and traders who deal in these commodities will not have to pay additional duties on their imports. The exemption of energy products is also significant, as it will help to reduce the cost of energy imports for countries that rely heavily on foreign sources of energy.
Minerals and Copper: Exemptions for Certain Minerals
The list of exemptions also includes certain minerals that are not available in the United States. This means that countries that are rich in these minerals, such as copper, will not have to pay tariffs on their exports. The exemption of copper is particularly significant, as it is an important raw material used in the production of a wide range of goods, including electronics and construction materials.
Semiconductors and Lumber: Other Key Exemptions
Semiconductors and lumber articles are also exempt from the tariffs. Semiconductors are an important component in the production of electronic devices, and the exemption is expected to benefit countries that are major producers of these devices. Lumber articles, on the other hand, are used in the construction industry, and the exemption is expected to benefit countries that rely heavily on imports of these materials.
Why These Goods Were Exempted
The question that remains is why these goods were exempted from the tariffs. The answer lies in the fact that the US government wants to avoid disrupting global supply chains and causing shortages of essential goods. By exempting certain goods, the government is trying to minimize the impact of the tariffs on the global economy.
Conclusion
In conclusion, while the announcement of reciprocal tariffs by US President Donald Trump has sent shockwaves across the globe, there are certain goods and items that have been exempted from the tariffs. Pharmaceutical products, bullion, energy products, certain minerals, copper, semiconductors, and lumber articles are among the goods that are exempt from the tariffs. The exemption of these goods is expected to benefit countries that rely heavily on imports of these materials and is a significant development in the ongoing trade tensions between the US and other countries.
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