Trump unleashes another big move! Three tariff policies shock the world, potentially reshaping the economic landscape.
On August 5 local time, in today's tightly interconnected global economy, a piece of news hit like a boulder thrown into a calm lake, creating ripples. U.S. President Trump announced three tariff policies in an interview with CNBC, instantly attracting global attention and becoming a hot topic of discussion, causing investors to become anxious.
Trump stated that the U.S. will first impose 'small tariffs' on imported pharmaceuticals. What seems like an insignificant start is actually the prelude to a 'big show.' According to the plan, the tax rate will gradually rise to 150% over the next year to a year and a half, and it could even reach as high as 250% in the end. Trump explicitly stated that this move aims to encourage pharmaceutical companies to relocate their production lines back to the U.S., revitalizing the American pharmaceutical industry.
However, if this policy is implemented, the global pharmaceutical industry may be facing a 'cold winter.' Over the past few decades, the production of pharmaceuticals in the U.S. has continuously declined, and many pharmaceutical companies have set up factories overseas to reduce costs, establishing a vast and complex global supply chain. Once high tariffs hit, this supply chain may instantly fall into chaos. American consumers may face skyrocketing drug prices, and countries and companies that rely on exporting pharmaceuticals to the U.S. will undoubtedly suffer severe blows, with reduced orders, declining revenues, and even potential layoffs in the industry.
Trump also revealed that he will announce specific plans for tariffs on semiconductors and chips 'around next week.' Although the details have yet to be disclosed, the importance of semiconductors and chips as the 'heart' of modern technology industries is undeniable. They are widely used in electronic devices, communication, artificial intelligence, and many other cutting-edge fields, serving as a key force driving technological advancement.
Once tariffs are imposed on imported chips, the costs for American technology companies will significantly increase. Companies like Microsoft, OpenAI, Meta, and Amazon, which are ambitious in the field of artificial intelligence and plan to spend heavily on advanced semiconductors, will be the first to be affected. The surge in costs may weaken their competitiveness in the global market and could trigger a chain reaction in the global semiconductor supply chain, leading to price volatility in related products and creating instability in the entire industry.
In addition, given India's continued purchase of Russian oil, Trump stated that he will 'significantly' increase tariffs on Indian goods exported to the U.S. within the next 24 hours. Currently, the tariff rate on Indian goods exported to the U.S. is 25%, and this substantial increase in tariffs will undoubtedly cast a shadow over U.S.-India trade relations.
As one of America's important trading partners, many Indian companies have long relied on the U.S. market. With the increase in tariffs, the prices of Indian goods exported to the U.S. will rise, significantly reducing their competitiveness, and the development and employment of related industries will also be impacted. Worse yet, this could likely trigger retaliatory measures from India, leading to a tense standoff in trade relations between the two countries, adversely affecting the stable development of global trade.
Trump's announcement of three tariff policies once again highlights his tough trade stance. However, looking back at history, tariff policies often act as a double-edged sword. American consumers may face the dilemma of rising prices and reduced product choices, while American companies may weaken their competitiveness due to supply chain disruptions and rising costs. For the global economy, the intensification of trade frictions will further increase uncertainty, bringing more obstacles to an already difficult recovery.
Now, all parties are closely monitoring the follow-up implementation of these policies and how countries will respond. The future direction of the global economy is uncertain: will it struggle forward amidst trade frictions, or can it find a new balance? Everything is filled with unknowns.
