Trump May Enforce New Tariffs on Key Sectors Starting Saturday — Chips, Steel Among Potential Targets

President Donald Trump has said that the U.S. will impose tariffs on a variety of imports including computer chips, pharmaceuticals, steel, aluminum, copper, oil, and gas starting on Feb. 1.

What Happened: President Trump has declared that the U.S. will impose tariffs on a wide range of imports. These tariffs, which could be implemented as soon as mid-February, will target computer chips, pharmaceuticals, steel, aluminum, copper, oil, and gas.

Trump also indicated his intent to raise tariffs on the European Union, citing their unfair treatment of the U.S., but did not provide specifics on the timeline or the extent of the increase. The European Union has yet to respond to these comments.

These newly announced tariffs are separate from the previously announced 25% tariffs on Canada and Mexico, and 10% tariffs on China, which are set to be implemented on Saturday, reports The Wall Street Journal.

Trump dismissed concerns about the potential impact of these tariffs on inflation or global supply chains, stating that any disruption would be temporary and that the tariffs would strengthen the U.S. economy.

Also Read: Trump’s Tariff Plans Ignite Market Rally, Pushing Stocks To Record Highs

"I think there could be some temporary, short term disruption and people will understand that. The tariffs are going to make us very rich and very strong," said Trump.

Leaders in Mexico, Canada, and China, as well as CEOs of American companies, are closely monitoring the situation, particularly regarding potential exemptions for major industries. Trump’s team is currently in negotiations over how to potentially reduce tariffs on these countries, but Trump may still decide to proceed with a full-scale approach.

White House Press Secretary Karoline Leavitt confirmed that the tariffs on Mexico, Canada, and China were imminent, but declined to comment on potential exemptions or what the trading partners could do to avoid the duties.

Trump’s announcement led to a negative turn in the stock market, with stocks losing morning gains following Leavitt’s remarks. Trump stated that there was nothing Canada, Mexico, and China could do to avoid the tariffs before Saturday, but mentioned the possibility of a lower tariff on Canadian crude oil.

Why It Matters: The new tariffs mark a significant escalation in Trump’s second-term trade wars. The move will likely have a substantial impact on global supply chains and could lead to increased inflation. The tariffs could also strain relations with key trading partners, including the European Union, Canada, Mexico, and China.

The potential for exemptions for major industries adds another layer of uncertainty to the situation. The impact of these tariffs on the U.S. economy and the global market will be closely watched in the coming weeks.

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