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U.S. Trade Tariffs to Begin August 7, With Pharma and Semiconductor Duties Expected Soon
KEY POINTS
- U.S. tariffs on imports from over 60 countries take effect August 7.
- 50% U.S. tariff on Brazil takes effect August 6.
- Tariffs on drug and chip imports expected soon, following national security probes, Trump says.
- Planned Mexico tariff paused for 90 days following bilateral talks.
The U.S. is placing 50% tariffs on imports from Brazil starting August 6, tariff changes for dozens of countries starting August 7, and has announced that pharmaceutical and semiconductor tariffs will follow “within the next week or so.”
President Donald Trump announced Tuesday that the United States will impose steep new tariffs on pharmaceutical imports, with rates rising to as high as 250% over the next 18 months.
Trump explained that the tariffs would begin at a modest rate but would ramp up significantly over time. “We’ll start with a small tariff on pharmaceuticals,” he said. “But in one year—one and a half years maximum—it’s going to go to 150%, and then it’s going to go to 250%, because we want pharmaceuticals made in our country.” The measure, he said, is aimed at encouraging domestic drug manufacturing and reducing reliance on foreign supply chains.
Trump also confirmed that a separate set of tariffs targeting semiconductors and chips would be unveiled shortly. “That’s a separate category,” he said, “but again, we want them made in the United States.”
The sectoral tariffs on pharmaceuticals and semiconductors stem from ongoing Section 232 trade investigations, which are conducted on national security grounds under the Trade Expansion Act. The administration has framed both pharmaceutical and semiconductor imports as national security concerns, with Trump indicating that formal tariff declarations for both sectors would be made “within the next week or so.”
These announcements follow an executive order signed late last week that outlines a wide-ranging tariff plan affecting imports from over 60 countries. With implementation pushed back by seven days, the tariffs—ranging from 10% to 41%—are now set to take effect on August 7.
For countries not listed, a baseline 10% tariff will apply. Exemptions will be granted for goods already in transit before August 7 and arriving by October 5—unless U.S. Customs determines the shipments “transshipped to evade applicable duties”. In such cases, a 40% tariff will be enforced.
Tariffs on the United States’ three largest trading partners — Mexico, Canada and China — are treated separately. The White House confirmed last Thursday that duties on non–USMCA-compliant Canadian goods rose from 25% to 35%, effective August 1. Mexico secured a 90-day pause following talks between Trump and President Claudia Sheinbaum, with USMCA-compliant goods remaining exempt and non-compliant items still subject to a 25% duty. As for China, negotiations are ongoing to extend the current truce beyond the August 12 deadline, but no formal decision has been announced.
For more information, see:
The White House Executive Order, FURTHER MODIFYING THE RECIPROCAL TARIFF RATES, July 31
The White House Fact Sheet, Fact Sheet: President Donald J. Trump Amends Duties to Address the Flow of Illicit Drugs Across our Northern Border, July 31
Bloomberg, Trump Says Pharma, Chips Tariffs Coming in ‘Next Week or So’, August 5
CNBC, Trump says new semiconductor tariff plan coming as soon as next week, August 5
The Hill, Trump threatens pharma tariffs of up to 250 percent, August 5
NDTV, Trump Says Pharma Tariffs Can Go Up To 250%; Levies On Chip Imports From ‘Next Week’, August 5
CBS News, Canadian trade minister says “we’re prepared to stick around and do the work needed” after U.S. imposed 35% tariff on goods, August 3
CBS News, Trump unveils higher tariffs on dozens of countries, August 1
Supply Chain Dive, US, Mexico agree to extend USMCA-tariff pause, July 31
Supply Chain Dive, US to install country-specific tariffs Aug. 7, July 31
Associated Press, US and China agree to work on extending the tariff pause deadline in trade talks in Stockholm, July 29
