The tariffs that went into place Saturday and today came with several notable exclusions: Steel, aluminum and autos (three areas already subjected to their tariffs); copper and lumber; plus pharmaceuticals, semiconductors, and critical minerals.
Those could be next, President Donald Trump has warned.
• Copper and critical minerals: Copper is a critical cog in the ongoing electrification of America and industries such as defense.
The US imports about 50% of the copper it uses, and demand is only expected to grow, especially as energy-consuming industries such as artificial intelligence and blockchain boom.
• Lumber: Softwood lumber is a critical and preferred ingredient to homebuilding, and 30% of it is imported by the US. Homebuilders warn that tariffs and other charges (including the potential doubling of existing duties on Canadian lumber) on softwood lumber and other materials could further exacerbate the housing affordability crisis.
Higher costs of lumber imports could also affect other products, such as furniture and even toilet paper.
• Pharmaceuticals: Trump said last night that “we’re going to be announcing very shortly a major tariff on pharmaceuticals.” Tariffs on drugs could drive up health care costs and hamper the affordability of medication, especially for people without insurance.
Under a 25% tariff, commonly prescribed drugs could increase from 82 cents per pill to 94 cents a pill, or roughly $42 more per year, Diederik Stadig, health care sector economist for ING, wrote in a post last week. More complex prescriptions, such as those for cancer treatment, could jump even higher, he wrote, estimating that a 24-week prescription could see additional costs in the $8,000 to $10,000 range.
Semiconductors: Medical devices, Wi-Fi routers, laptops, smartphones, cars, household appliances and LED lightbulbs are just a few examples of where semiconductor chips are found. And these products often don’t just require one or two. For instance, new cars contain thousands of them.
