US President Donald Trump is escalating his trade war with sector-specific tariffs, moving beyond “reciprocal” tariffs to target specific domestic industries. The move will involve continued application of Section 232 of the Trade Expansion Act of 1962, allowing for tariffs to protect or bolster domestic industries deemed a national security threat.
Investigations into copper, lumber, pharmaceuticals, and semiconductors are ongoing, with plans to launch probes for critical minerals next. Tariffs on these products could exacerbate inflation, accelerate economic activity reductions, and impact various sectors.
Copper and critical minerals: Investigation underway, but demand is expected to grow due to electrification and energy-consuming industries. Economists warn that the lack of domestic supply chain infrastructure hinders US access to critical resources.
Lumber: Tariffs could worsen housing affordability crisis and affect other products like furniture and toilet paper. Recent move to open up national forests for logging has been criticized for environmental and species impact.
Pharmaceuticals: Tariffs raise conflicting policy goals, as Trump aims to lower prices while bolstering US manufacturing. A 25% tariff on branded pharmaceuticals could increase costs by $42 per year, potentially hampering medication affordability.
Semiconductors: Critical component in various products, but the US lacks electronic assembly capabilities. Any domestic chip production would still require international shipping and subject to tariffs.
Source: https://edition.cnn.com/2025/04/15/economy/next-round-of-tariffs-cost/index.html