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, aimed at addressing the growing trade deficit between the United States and several countries, including China, Mexico, and Canada. However, not all goods and items have been caught in the tariff net. Certain commodities have been kept out of the ambit of these tariffs, and in this blog post, we will explore the list of exempted items.
Pharmaceuticals: A Significant Exemption
Pharmaceutical products are one of the significant exemptions from Trump’s new tariffs. This is a significant relief for India, as pharmaceutical exports from India to the United States are worth nearly $9 billion. The exemption includes raw materials, active pharmaceutical ingredients, and finished pharmaceutical products. This means that Indian pharmaceutical companies, such as Sun Pharma, Dr. Reddy’s Laboratories, and Lupin, will not face any tariffs on their exports to the United States.
Bullion: Physical Gold and Silver
Another commodity that has been exempted from tariffs is bullion. Physical gold and silver of high purity have been kept out of the tariff ambit. This is a welcome relief for investors and traders who deal in gold and silver as a hedge against market volatility or for long-term investment.
Energy and Minerals
Energy products, including crude oil, natural gas, and coal, are also exempt from tariffs. This is significant, as the United States is one of the world’s largest energy producers and exporters. Additionally, some minerals not available in the United States, such as rare earth minerals, have been exempted from tariffs. These minerals are used in a variety of high-tech products, including electronics, renewable energy systems, and advanced ceramics.
Semiconductors: A Key Component in Modern Technology
Semiconductors, a key component in modern technology, have also been exempted from tariffs. Semiconductors are used in a wide range of applications, including computers, smartphones, and televisions. The exemption of semiconductors will help to maintain the competitiveness of the US technology industry and ensure a stable supply chain.
Copper and Steel
Copper and steel, two of the most widely used metals in construction and manufacturing, have been exempted from tariffs. Copper is used in electrical wiring, plumbing, and other applications, while steel is used in construction, transportation, and manufacturing.
Aluminum
Aluminum, another widely used metal, has also been exempted from tariffs. Aluminum is used in packaging, transportation, and construction, among other applications.
Lumber Articles
Finally, lumber articles, including wood products and paper products, have been exempted from tariffs. Lumber articles are used in construction, furniture making, and packaging, among other applications.
Conclusion
In conclusion, while Trump’s new tariffs may have a significant impact on certain industries and countries, there are certain goods and items that have been exempted from these tariffs. Pharmaceuticals, bullion, energy products, minerals, semiconductors, copper, steel, aluminum, and lumber articles are among the items that have been kept out of the tariff ambit. These exemptions will help to maintain the competitiveness of certain industries and ensure a stable supply chain.
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