Trump says tariffs on chips and pharma imports to be announced soon

President Trump has said tariffs on pharmaceutical and semiconductor imports will be announced shortly, as the US imposes a 27% duty on all imports from India

President Donald Trump has stated that tariffs on pharmaceuticals and semiconductors will be announced shortly, emphasising that the measures on pharmaceutical imports will be unprecedented.

 

“The chips are starting very soon. Pharma is going to start coming in, I think, at a level that we haven’t really seen before. We are looking at pharma right now. Pharmaceuticals. It’s a separate category. We’ll be announcing that sometime in the near future. It’s under review right now,” Trump said, speaking to reporters aboard Air Force One on Thursday evening (IST).

 

Trump appeared unconcerned about the recent stock market downturn, instead reinforcing his administration’s commitment to imposing new trade restrictions. He stated that tariffs on semiconductor imports would take effect “very soon” and hinted at sweeping measures on pharmaceuticals.  ALSO READ | How Donald Trump's tariffs were honed in the final hours before rollout

   

“Every country is calling us. That’s the beauty of what we do. We put ourselves in the driver’s seat — if we would have asked these countries to do us a favour, they would have said no. Now they will do anything for us,” Trump told reporters.

 

“It’s going to make our country very rich,” he added.

 

The president’s remarks come after the US announced reciprocal tariffs on more than 180 countries on Thursday. He declared a 10 per cent universal tariff on all imports, effective 5 April, and additional higher tariffs starting 9 April. Imports from India were hit with a flat 27 per cent tariff. As part of these measures, a 25 per cent tariff on automobile imports was enforced on 3 April.

 

In its order, the Trump administration had exempted pharmaceuticals and semiconductors from the reciprocal tariff policy. 

Sensex drops 800 points

The Sensex dropped by 800 points to 75,500, while the Nifty 50 fell to 22,940 at 10:40 am, as news emerged about impending tariffs on pharmaceutical imports. This came as a blow to investor sentiment, following a relatively calm start to the trading session. 

 

On April 3, the Nifty 50 closed the day lower by 82.25 points at 23,250.10, forming a bullish belt hold candlestick pattern, indicating potential strength in the market. Despite early signs of recovery, the domestic indices ended with modest losses after the announcement of a 27 per cent tariff on US imports. The IT and auto sectors, in particular, faced selling pressure, driven by concerns about a potential US economic slowdown and ongoing supply chain disruptions.

 

Yesterday, pharmaceutical stocks had seen a boost, thanks to an exemption from tariffs under a White House order. However, today’s reports have revealed that pharmaceutical tariffs will indeed be introduced, adding to the uncertainty hanging over the markets.

 

US, Asian markets react to Trump tariffs

In the United States, stocks plummeted on Thursday, sending the S&P 500 back into correction territory after President Donald Trump unveiled sweeping tariffs. The news raised concerns of a global trade war, potentially plunging the world economy into a recession. The broad market index dropped 4.84 per cent, settling at 5,396.52, marking its worst day since June 2020. The Dow Jones Industrial Average tumbled by 1,679.39 points, or 3.98 per cent, closing at 40,545.93, while the Nasdaq Composite plummeted by 5.97 per cent, ending at 16,550.61 - its steepest decline since March 2020.

 

In Asian markets, the Nikkei 225 dropped to an eight-month low, falling by as much as 4.6 per cent before recovering slightly to close down 3 per cent at 34,102.00.

 

Chinese markets opened on a weak note, with the CSI 300 blue-chip index down by 0.24 per cent, and the Shanghai Composite Index also saw a small drop of 0.1 per cent. Other Asian markets were also hit, with South Korea’s Kospi index declining by 1.57 per cent, the Kosdaq falling by 0.55 per cent, and Hong Kong's Hang Seng index plunging by 2 per cent.