Which Goods & Items are Exempt from Trump’s New Tariffs?
In a bid to protect American industries, US President Donald Trump recently announced reciprocal tariffs on several imported goods from various countries. The tariffs, which are expected to take effect from June 1, aim to reduce the trade deficit and create jobs in the United States. However, not all goods have been caught in the web of tariffs. Certain commodities have been kept out of the ambit of Trump’s reciprocal tariffs, and in this blog post, we will explore the list of exemptions.
Pharmaceuticals
One of the significant exemptions from the tariffs is pharmaceutical products. India, which is a major exporter of pharmaceuticals to the United States, stands to benefit from this exemption. According to a report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), pharmaceutical products comprise nearly $9 billion worth of exports from India. This means that Indian pharmaceutical companies, such as Sun Pharma, Dr. Reddy’s Laboratories, and Cadila Healthcare, will not have to pay tariffs on their exports to the US.
Bullion (Physical Gold and Silver of High Purity)
Another commodity that has been exempt from the tariffs is bullion. This includes physical gold and silver of high purity. The exemption is likely to benefit investors and traders who purchase gold and silver as a hedge against inflation or as a store of value.
Energy
Energy products, including crude oil, refined petroleum products, and natural gas, are also exempt from the tariffs. This is likely to benefit oil-producing countries such as Saudi Arabia, Russia, and the United Arab Emirates, which are major suppliers of energy to the US.
Some Minerals Not Available in the US
The tariffs do not apply to some minerals that are not available in the United States. These minerals, which include rare earth minerals, are essential for the production of high-tech products such as electronics, batteries, and solar panels.
Copper
Copper, which is used in a wide range of applications, including electrical wiring, plumbing, and construction, is also exempt from the tariffs. Copper is a key component in the production of many goods, including electronics, automobiles, and appliances.
Steel and Aluminium
Steel and aluminium, which are critical components in the production of many goods, including automobiles, aircraft, and construction equipment, are not subject to tariffs. This is likely to benefit countries such as Canada and Mexico, which are major suppliers of steel and aluminium to the US.
Semiconductors
Semiconductors, which are used in the production of electronic devices, including computers, smartphones, and televisions, are also exempt from the tariffs. The exemption is likely to benefit countries such as South Korea and Taiwan, which are major suppliers of semiconductors to the US.
Lumber Articles
Lumber articles, including wood and wood products, are also exempt from the tariffs. This is likely to benefit countries such as Canada, which is a major supplier of lumber to the US.
Conclusion
In conclusion, while many goods and commodities are subject to tariffs imposed by the US government, there are certain items that have been exempted. These items, including pharmaceuticals, bullion, energy, some minerals not available in the US, copper, steel, aluminium, semiconductors, and lumber articles, are essential for the production of many goods and are likely to benefit countries that are major suppliers of these commodities to the US.
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