Trump announced new tariffs on drugs and chips and nominated a new head of the Fed.

The following are the main points covered in the statement made by President Trump this morning:

Implement a tiered tariff on imported drugs: drug imports will initially be taxed at 10%, rising to 150% within 12 months, and then to 250% after 18 months, aimed at forcing pharmaceutical companies to move production capacity back to the United States.

Tariff Policy on Chips and Semiconductors: The U.S. has announced that it will impose tariffs of about 100% on imported chips and semiconductors. However, companies that build factories within the United States or have committed to building factories will be exempt from these tariffs. It was also emphasized that there will be no charges for manufacturing in the U.S.

That afternoon, Trump also announced jointly with Cook that Apple would add an additional $100 billion for U.S. research and manufacturing over four years on top of its original $500 billion commitment, and would enjoy tariff exemptions.

In addition, TSMC, NVIDIA, and GlobalFoundries have already committed to setting up production lines in the U.S. The high tariff policy is systematically attracting global chip and pharmaceutical giants to return to the homeland, accelerating the reconstruction of the American manufacturing system.

Sanctions on Russian oil transactions: It was announced that an executive order will be signed to significantly raise the tariffs on Indian goods exported to the U.S. from 25% to 50%, citing India's continued purchase and resale of Russian oil. The new tax rate will take effect within 21 days. In addition, there are threats to impose tariffs on other countries purchasing Russian oil, but no specifics were provided.

Fed board appointment: A temporary Fed board member will be appointed first to fill the vacancy left by current board member Adriana Kugler after her resignation on August 8. The term of the temporary board member will end in January next year. Analysts believe that Trump will take this opportunity to intervene more deeply in Fed affairs, paving the way for the next new Fed chair candidate.

In summary, these statements reflect the long-term strategy of the Trump administration to adjust the global trade landscape through tariff measures, aiming to promote the return of American manufacturing while applying economic and political pressure on the international stage.

However, the specific implementation details of the policy, especially the criteria for determining tariff exemptions and the regulatory mechanisms, still need to be further clarified. The market generally expects that this policy will trigger a deep adjustment and reorganization of the global technology industry chain in the coming months.

#Trump Statement