Which Goods & Items are Exempt from Trump’s New Tariffs?
In a move aimed at protecting American businesses and jobs, US President Donald Trump announced new reciprocal tariffs on various goods and items from several countries, including China, Canada, and Mexico, on Wednesday, April 2. The tariffs, which range from 10% to 25%, are set to take effect on June 1. However, not all goods and items have been affected by this decision. Certain commodities have been kept out of the ambit of Trump’s tariffs, and in this blog post, we will take a closer look at those exemptions.
Pharmaceuticals
Pharmaceutical products are one of the key exemptions from Trump’s tariffs. According to a report by Moneycontrol, pharmaceutical products comprise nearly $9 billion worth of exports from India, making them one of the largest beneficiaries of the exemption. This is a significant relief for India, which is the world’s largest provider of generic medicines. The exemption is expected to help Indian pharmaceutical companies maintain their market share in the US and continue to supply essential medicines to American patients.
Bullion (Physical Gold and Silver of High Purity)
Another commodity that has been exempted from Trump’s tariffs is bullion, including physical gold and silver of high purity. This decision is likely to benefit gold and silver investors, who may not have to pay additional tariffs on their precious metal purchases.
Energy
Energy products, such as crude oil, natural gas, and coal, have also been exempted from the tariffs. This decision is expected to benefit energy-producing countries, including Russia, Saudi Arabia, and the United Arab Emirates, which are major suppliers of energy products to the US.
Some Minerals Not Available in the US
Some minerals that are not available in the US, such as rare earth minerals and other strategic minerals, have been exempted from the tariffs. This decision is expected to benefit countries that are major producers of these minerals, such as China, Australia, and Canada.
Copper
Copper, a key metal used in various industries, including construction, electronics, and transportation, has also been exempted from the tariffs. The exemption is expected to benefit copper-producing countries, including Chile, Peru, and the Democratic Republic of Congo.
Steel and Aluminium
Interestingly, steel and aluminium, which are among the key commodities that triggered the trade war with China, have also been exempted from the tariffs. This decision is likely to benefit steel and aluminium producers in countries like Canada, Mexico, and the European Union, which are major suppliers of these metals to the US.
Semiconductors
Semiconductors, a critical component in the production of electronic devices, have also been exempted from the tariffs. This decision is expected to benefit countries that are major producers of semiconductors, such as South Korea, Taiwan, and Japan.
Lumber Articles
Lumber articles, including wood and wood products, have also been exempted from the tariffs. This decision is expected to benefit countries that are major producers of lumber, such as Canada, Sweden, and Finland.
Conclusion
In conclusion, while many goods and items have been affected by Trump’s new tariffs, certain commodities have been kept out of the ambit of the tariffs. Pharmaceuticals, bullion, energy, some minerals not available in the US, copper, steel, aluminium, semiconductors, and lumber articles are among the key exemptions. These exemptions are expected to benefit countries and industries that are major producers or users of these commodities.
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