After imposing 100 percent tariff on Pharma, Trump is now in the process of a new tariff scheme. Reuters reports claimed that Trump is considering bringing a new tariff scheme on electrical equities, which will be on the bond of the number of chips in them. However, no official things have been revealed yet, due to which there can be a change in this scheme.
If this tariff is installed, then electrical goods- from laptops to toothbrushes will be affected and inflation can increase in the world. Also, the income of semiconductor companies will be affected. Michael Strain, an economist at the American Enterprise Institute, said that the scheme can increase the prices of goods and that too at a time when the US is struggling with the problem of inflation, inflation is still above the target of the Fed and is increasing.
The Economist said that the increase in tariffs will also make domestic -level products expensive, as the input cost will increase. Due to this, common people may face more inflation.
Indications found to install new tariffs
Reuters said that White House spokesperson Kush Desai said that the US cannot depend on foreign imports for its national and economic security semiconductor products. He further said that the Trump government is adopting a small, multidimensional attitude to bring manufacturing companies back to the US with tariffs, tax cuts, regulation and energy.
Promise to apply 100% tariff on semiconductor
Which products will be tested on the chip, what will be the exact rates of tariffs and what will be possible discounts? This is not yet decided. Trump has already promised to impose 100 per cent tariffs on semiconductor imports, while companies producing or willing to do so have exempted exemption. Taiwan semiconductor manufacturing company and Samsung Electronics are among the largest foreign suppliers.
This is also expected about the semiconductor
Reuters said in their report that another source said that the Department of Commerce is considering imposing 25% tax in imported equipment and 15% tax for imported electronics from Japan and European Union. However, these figures are still initial. Officials have also considered that if a company transferred its Aadhaar production to the US, then the replica can be given per dollar related to investment in American plant.
According to sources, the Ministry of Commerce initially proposed exemption to chip manufacturing equipment to protect American semiconductor production from damage, but the White House withdrew it by the White House citing resistance to President Trump’s concessions.
100 % tariff on pharma
Significantly, this idea has come amidst widespread efforts by President Donald Trump to tough the American trade policy. On Thursday, he announced new import duty, in which 100% tariffs on branded drugs and 25% fee on heavy trucks have been announced from October 1.
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