The Trump administration is advancing with a new series of tariffs that experts suggest could have a broad impact on imports. Bloomberg reports that the US Commerce Department is expected to announce the results of investigations into critical sectors such as semiconductors, pharmaceuticals, and minerals, potentially leading to new levies on foreign products.
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President Trump has been utilizing Section 232 of the Trade Expansion Act to impose import taxes, notably on steel and aluminum, since 2018. These tariffs, currently set at 50%, affect nearly $200 billion worth of goods, including household items like fishing reels and brooms, according to Michigan State University estimates. This effort comes amid legal challenges to Trump’s earlier tariffs imposed in April, which are under scrutiny by the Supreme Court.
The administration’s actions have raised concerns among trading partners, complicating negotiations aimed at reducing existing tariffs. Japanese Prime Minister Shigeru Ishiba emphasized the importance of careful progress in trade talks, reflecting the uncertainty surrounding the ongoing 232 investigations. The potential for tariffs on a wide range of goods, including those involving major companies like Apple Inc., further complicates the trade landscape.
IndexBox data highlights the significant economic impact of these tariffs, with the Producer Price Index for manufactured steel cans and tinware products rising by 8.7% this year. As the scope of the tariffs expands to include consumer goods, experts warn of possible inflationary effects and disruptions in supply chains.
