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Trump Unveils Looming Tariffs on Pharma and Chips, Shaking Global Trade
6 Aug
Summary
- Trump to impose new tariffs on pharmaceuticals and semiconductors
- India at risk due to high 25% tariffs and threat of further increases
- Tariffs could disrupt global supply chains, especially India's auto industry
According to a news report from August 2025, US President Donald Trump has announced that he will be unveiling fresh tariffs on pharmaceuticals and semiconductors within the next week. This move is expected to further complicate the already turbulent global trade dynamics.
Countries around the world are bracing for the impact of these new US tariffs, which are set to take effect this week. India is in a particularly disadvantageous position, as it currently faces a 25% tariff on its exports to the US, and Trump has threatened to raise this tariff "very substantially over the next 24 hours" due to India's purchases of Russian oil.
India's position is further complicated by the fact that it is one of the largest exporters of pharmaceutical products globally. Additionally, any duties imposed on semiconductors could also have a significant impact on India's thriving automotive sector, which relies heavily on imported chips for components like EV controllers and infotainment systems.
Analysts believe that the potential tariffs on semiconductor imports could disrupt the global supply chain, creating ripple effects across industries that are heavily dependent on these critical components. This could lead to production cost escalation or even supply shortages for automakers in India, potentially impacting their export performance.
As the global trade landscape continues to shift, businesses and policymakers in India will need to closely monitor the situation and adapt their strategies accordingly to mitigate the risks and capitalize on any emerging opportunities.
