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 China, Europe, and other countries. The move was aimed at reducing the trade deficit and promoting American goods. However, not all goods and items were affected by the tariffs. Certain commodities have been kept out of the ambit of the tariffs, and in this blog post, we will explore the list of exemptions.
Pharmaceuticals
Pharmaceuticals are one of the significant exemptions from the tariffs. India, in particular, stands to benefit from this exemption, as pharmaceutical products comprise nearly $9 billion worth of exports from the country. The exemption will allow Indian pharmaceutical companies to continue exporting their products to the US without facing any additional tariffs.
Bullion (Physical Gold and Silver of High Purity)
Another notable exemption is bullion, which includes physical gold and silver of high purity. This move is likely to benefit investors and traders who deal in precious metals. The exemption will ensure that the tariffs do not affect the value of gold and silver, making it an attractive option for investors.
Energy
Energy products, including crude oil, natural gas, and refined petroleum products, are also exempt from the tariffs. This is a significant relief for oil-producing countries, including Saudi Arabia, Iraq, and Russia. The exemption will help maintain the global energy supply and prevent any disruptions to the market.
Some Minerals Not Available in the US
Certain minerals that are not available in the US are exempt from the tariffs. This includes minerals like cobalt, lithium, and rare earth minerals, which are essential for the production of electric vehicles and other high-tech products.
Copper
Copper, a widely used metal in construction and manufacturing, is also exempt from the tariffs. Copper imports from countries like Chile, Peru, and Indonesia will not be affected by the tariffs.
Steel and Aluminium
Interestingly, steel and aluminium, two metals that have been at the center of trade disputes between the US and other countries, are exempt from the tariffs. However, it is worth noting that the US has imposed tariffs on steel and aluminium imports from several countries, including China, Canada, and Mexico.
Semiconductors
Semiconductors, a critical component in the production of electronic devices, are also exempt from the tariffs. The exemption will benefit companies like Samsung and Taiwan Semiconductor Manufacturing Company (TSMC), which are major suppliers of semiconductors to the US market.
Lumber Articles
Lumber articles, including wood products like plywood and veneer, are also exempt from the tariffs. This is a significant relief for countries like Canada, which is a major supplier of lumber products to the US.
Conclusion
In conclusion, while the tariffs announced by President Trump may have far-reaching implications for the global economy, certain goods and items have been exempt from the tariffs. Pharmaceuticals, bullion, energy, some minerals not available in the US, copper, steel, aluminium, semiconductors, and lumber articles are among the items that have been kept out of the ambit of the tariffs. The exemptions will benefit countries like India, which is a significant player in the pharmaceutical industry, and oil-producing countries, which will continue to supply energy to the global market.
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