Which goods & items are exempt from Trump’s new tariffs?
On Wednesday, April 2, US President Donald Trump announced a new set of reciprocal tariffs on imported goods from several countries, including China, Canada, Mexico, and the European Union. The move is aimed at reducing the trade deficit and promoting American industries. While the tariffs have been widely criticized by many, certain commodities have been kept out of the ambit of this new trade policy. In this blog post, we will delve into the list of goods and items that are exempt from Trump’s new tariffs.
Pharmaceuticals and Bullion Among the Exemptions
According to a report by Moneycontrol, pharmaceutical products are among the items that have been exempt from the new tariffs. This is a significant development, as pharmaceutical products comprise nearly $9 billion worth of exports from India. The exemption on pharmaceuticals is expected to benefit Indian companies such as Dr. Reddy’s Laboratories, Sun Pharmaceutical Industries, and Cadila Healthcare, among others.
Another item that has been kept out of the tariff ambit is bullion, which includes physical gold and silver of high purity. This exemption is expected to benefit investors and traders who deal in these precious metals.
Energy and Minerals Also Exempt
Energy products, including liquefied natural gas (LNG) and oil, are also exempt from the tariffs. This is a significant development, as the US is a major producer of energy products and imports a significant amount of oil from other countries. The exemption on energy products is expected to benefit American energy companies and consumers.
Certain minerals that are not available in the US are also exempt from the tariffs. These minerals include rare earth minerals, which are used in the production of high-tech products such as smartphones and laptops.
Copper, Steel, Aluminium, and Semiconductors Exempt
Copper, steel, and aluminium, which are essential inputs for many American industries, are also exempt from the tariffs. The exemption on these metals is expected to benefit American manufacturers who use them in the production of goods such as automobiles, aircraft, and construction materials.
Semiconductors, which are used in the production of electronic devices such as computers and smartphones, are also exempt from the tariffs. This is a significant development, as semiconductors are a critical component of many American industries.
Lumber Articles Exempt
Lumber articles, including wood and wood products, are also exempt from the tariffs. This is a significant development, as the US is a major producer of lumber and imports a significant amount of wood products from other countries.
Why Were These Items Exempted?
The exemption of certain items from the tariffs is expected to benefit American consumers and industries. The Trump administration has exempted these items to avoid disrupting the supply chain and to ensure that American industries have access to the raw materials they need to produce goods.
The exemption of pharmaceuticals, for example, is expected to benefit American patients who rely on imported medicines. The exemption of energy products is expected to benefit American consumers who rely on imports to meet their energy needs.
Conclusion
In conclusion, while Trump’s new tariffs have been widely criticized by many, certain commodities have been kept out of the ambit of this new trade policy. Pharmaceuticals, bullion, energy products, certain minerals, copper, steel, aluminium, semiconductors, and lumber articles are among the items that are exempt from the tariffs. These exemptions are expected to benefit American consumers and industries, and are a significant development in the ongoing trade tensions between the US and other countries.
