Trump says Tariffs on Chips and Pharma Could Come Soon

Trade Policy & Tariffs - The US administration is considering tariffs on goods with embedded chips, potentially impacting $300 billion of imports [6] - Transshipped goods, starting August 7, face a 40% tariff, but the implementation and tracking methods lack clarity [8] - Defining the target of transshipment policies is crucial, whether it's customs enforcement or addressing Chinese factories in other countries [9][10][11] - Trade deficit narrowed by 16% in June, reaching the tightest level since September 2023, slightly above $60 billion, but further data is needed to confirm the trend [11] Industry & Manufacturing - Reshoring chips or pharmaceuticals to the US is very challenging and may not offer a cost advantage [5] - Building chip foundries and relocating manufacturing facilities in the US is time-consuming and expensive, requiring FDA approval for pharmaceuticals [2][4] - The EU supplies a significant portion of drugs to the US, and the impact of tariffs on this trade is a concern [1] Geopolitical & Trade Deals - The administration is cautious about disrupting trade negotiations with China, especially regarding rare earth actions [19] - Potential secondary sanctions on Russia could impact trade deals with China and India [18][20] - Trade deficits with specific countries depend on the composition of their exports to the US, such as energy from Canada [16][17]