After market chaos last week and a 90-day pause that was announced by President Donald Trump on Wednesday, April 9th, winners and losers from the U.S.’s new tariff policies have begun to pop up, although much remains uncertain and fluid.
Winner: Technology Companies
Although stocks saw precipitous drops after blanket tariffs were announced on nearly all sectors of the global economy, there was a glimmer of hope over the weekend after a report that the Trump administration was planning on excluding many technology components used to make electronics such as phones, tablets, etc. Multiple reports over the weekend hailed the decision as a victory for technology companies such as Apple, Google, and others who had lobbied the White House for exclusions from the tariffs.
In response, the Trump administration said that it had not yet settled on any exclusions for technology companies, and that these companies would be treated similarly. But Wall Street seems to believe that exclusions are indeed coming.
Winner: U.K. and U.S. Trade Relations
Although the Trump administration has claimed that “hundreds of countries” are reaching out seeking a deal on trade, one country in particular has economists and trade experts hopeful for progress back towards more free trade-oriented policies. The United Kingdom is reportedly working on a deal with the U.S. to lower or possibly eliminate tariffs on a variety of goods.
As one of Europe’s largest economies, and not being part of the European Union (E.U.), the a deal with the U.K. would signal Trump’s intent to strike favorable deals with some larger markets.
Loser: Semiconductors and Pharmaceuticals
Today, it was reported that the Trump administration started a process to impose new tariffs on semiconductors and pharmaceutical products. The new tariffs would be in addition to existing tariffs put into effect over recent weeks.
With its reported actions, published online, the U.S. government would invoke national security laws to investigate the sectors as negatively affecting U.S. national security, a pretense that would allow the Trump administration to raise tariffs.
If Trump goes ahead with expanded tariffs on these sectors, they would be implemented under Section 232 of the Trade Expansion Act of 1962, a national security law that gives the government the power to impose tariffs in the name of national security. In a press release, the White House confirmed the reports but declined to provide further specifics.
