Which Goods & Items are Exempt from Trump’s New Tariffs?
In a bid to protect American industries, US President Donald Trump announced a new set of reciprocal tariffs on Wednesday (April 2). The tariffs, which aim to balance the trade deficit with other countries, have sparked concerns among businesses and investors worldwide. While many goods have been caught in the crosshairs, certain commodities have been kept out of the ambit of these tariffs. In this blog post, we’ll take a closer look at the goods and items that have been exempted from Trump’s new tariffs.
Pharma Products: A Significant Exemption
Pharmaceutical products, which account for nearly $9 billion worth of exports from India, have been exempted from the tariffs. This is a significant development, especially for Indian pharmaceutical companies that have been a major supplier of medicines to the United States. The exemption is likely to benefit companies like Sun Pharma, Dr. Reddy’s Labs, and Lupin, among others.
Bullion (Physical Gold and Silver of High Purity)
Another commodity that has been exempted from the tariffs is bullion. Physical gold and silver of high purity, which are often used for investment purposes, are not subject to the new tariffs. This means that investors can continue to buy and sell these precious metals without incurring additional costs.
Energy and Minerals: Some Exemptions Apply
Energy and minerals have also been spared from the tariffs, although some specific minerals have been exempted. For instance, certain minerals that are not available in the United States, such as rare earth minerals, have been exempted. Additionally, copper, steel, and aluminum, which are critical components in the production of various goods, have also been exempted.
Semiconductors: A Key Component in Modern Technology
Semiconductors, which are essential components in modern technology, have also been exempted from the tariffs. These tiny electronic components are used in a wide range of applications, including smartphones, computers, and televisions. The exemption is likely to benefit companies like Intel, Texas Instruments, and Micron Technology, among others.
Lumber Articles: An Exemption for the Construction Industry
Lumber articles, which are used in the construction industry, have also been exempted from the tariffs. This is a significant development, especially for companies that manufacture building materials, such as wood panels, plywood, and oriented strand board (OSB).
Other Items Exempted from Tariffs
In addition to these goods and items, other commodities have also been exempted from the tariffs. These include:
- Certain agricultural products, such as corn, soybeans, and wheat
- Aviation fuel and other petroleum products
- Medical equipment and supplies
- Musical instruments and equipment
- Sports equipment and apparel
Conclusion
In conclusion, while many goods have been caught in the crosshairs of Trump’s new tariffs, certain commodities have been spared from the tariffs. Pharmaceuticals, bullion, energy, minerals, semiconductors, lumber articles, and other items have been exempted from the tariffs. These exemptions are likely to benefit companies and industries that rely on these goods, and are a significant development in the ongoing trade tensions between the United States and other countries.
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