Which goods & items are exempt from Trump’s new tariffs?
On Wednesday, April 2, US President Donald Trump announced reciprocal tariffs on several goods imported from the European Union, Canada, and Mexico. The tariffs, which are set to take effect on June 1, aim to address what the Trump administration perceives as unfair trade practices by these countries. However, not all goods are being targeted by these tariffs. In this blog post, we’ll take a closer look at the items that have been exempt from Trump’s new tariffs.
Pharmaceuticals
One of the notable exemptions from the tariffs is pharmaceuticals. According to a report by Moneycontrol, the pharmaceutical industry is a significant contributor to India’s exports, with nearly $9 billion worth of pharma products being exported to the US every year. This includes medicines, vaccines, and other healthcare products. The exemption of pharmaceuticals from the tariffs is likely to come as a relief to Indian pharmaceutical companies, which could have faced significant losses if tariffs were imposed.
Bullion
Another commodity that has been exempt from the tariffs is bullion, which includes physical gold and silver of high purity. This is likely due to the fact that gold and silver are considered precious metals and are not subject to the same tariffs as other commodities.
Energy
Energy products, including crude oil, natural gas, and coal, have also been exempt from the tariffs. This is likely due to the fact that energy is a critical component of the global economy, and imposing tariffs on energy products could have significant and far-reaching consequences.
Minerals not available in the US
Certain minerals that are not available in the US have also been exempt from the tariffs. This includes minerals such as titanium, rare earth minerals, and other strategic minerals that are critical to the production of high-tech goods.
Copper
Copper, which is a vital component of many electronic devices, has also been exempt from the tariffs. Copper is used in a wide range of applications, including electrical wiring, plumbing, and architecture.
Steel and Aluminium
Steel and aluminium, which are critical components of many industries, have also been exempt from the tariffs. This is likely due to the fact that these metals are used in a wide range of applications, including construction, manufacturing, and transportation.
Semiconductors
Semiconductors, which are used in the production of many electronic devices, have also been exempt from the tariffs. This includes components such as microprocessors, memory chips, and other electronic components.
Lumber articles
Finally, lumber articles, including wood and wood products, have also been exempt from the tariffs. This includes wood used in construction, furniture, and other applications.
Why these items were exempt
So, why were these items exempt from the tariffs? According to Moneycontrol, the exemptions were granted due to a combination of factors, including the importance of these industries to the US economy, the lack of domestic production of certain minerals and commodities, and the potential for significant economic disruption if tariffs were imposed on these items.
Conclusion
In conclusion, while many goods and items are being targeted by Trump’s reciprocal tariffs, there are certain commodities that have been exempt from the tariffs. These include pharmaceuticals, bullion, energy, minerals not available in the US, copper, steel, aluminium, semiconductors, and lumber articles. These exemptions are likely to come as a relief to industries that rely heavily on these commodities, and could help to mitigate the potential economic disruption caused by the tariffs.
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