Trump Announces Tariffs on Drugs and Chips and Nominates New Fed Chair
The following are the main points covered in the statement made by U.S. President Trump this morning:
Implementation of tiered tariffs on imported drugs: Import tariffs on drugs will start at 10%, increasing to 150% within 12 months, and further rising to 250% after 18 months, aimed at forcing pharmaceutical companies to relocate production back to the U.S.
Chip and semiconductor tariff policy: It was announced that the U.S. will impose tariffs of about 100% on imported chips and semiconductors. However, companies that build or have committed to building factories in the U.S. will be exempt from these tariffs. It was also emphasized that no fees will be charged for manufacturing in the U.S.
On the same afternoon, Trump also jointly announced with Cook that Apple would add an additional $100 billion for U.S. R&D and manufacturing on top of its existing $500 billion commitment, and enjoy tariff exemptions.
Additionally, TSMC, NVIDIA, and GlobalFoundries have already committed to setting up production lines in the U.S., and the high tariff policy is systematically attracting global chip and pharmaceutical giants to return to the U.S., accelerating the reconstruction of the American manufacturing system.
Sanctions on Russian oil transactions: It was announced that an executive order will be signed to significantly raise tariffs on Indian goods exported to the U.S. from 25% to 50%, citing India's ongoing purchase and resale of Russian oil; the new rates will take effect within 21 days. Furthermore, there were threats to impose tariffs on other countries purchasing Russian oil, but no specifics were provided.
Appointment of Federal Reserve Board member: A temporary Federal Reserve board member will first be appointed to fill the vacancy left by current board member Adriana Kugler after her resignation on August 8. The term of the temporary member will end in January next year. Analysts believe that Trump will take this opportunity to intervene more deeply in Federal Reserve affairs and pave the way for the selection of the next new Federal Reserve chair.
In summary, these statements reflect the long-term strategy of the Trump administration to adjust the global trade landscape through tariff measures, aimed at promoting the return of American manufacturing while exerting economic and political pressure on the international stage.
However, the specific implementation details of the policy, especially the standards for tariff exemptions and regulatory mechanisms, remain to be further clarified. The market generally expects this policy to trigger a deep adjustment and reorganization of the global technology industry chain in the coming months.