Trump Aims Tariff Double Whammy at Industries, Nations by Aug. 1

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Levies on generic medicines that have slim profit margins could hit companies including Teva Pharmaceutical Industries Ltd and Sandoz Group AG. A broader hit that includes brand-name drugs like Ozempic and Keytruda will weigh on the largest manufacturers, such as Eli Lily & Co., Merck & Co. and Pfizer Inc.

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Semiconductors 

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Chips tariffs are on a “similar” timeline to drugs and are “actually less complicated,” Trump said Tuesday.

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Semiconductors were exempted earlier this year from US tariffs on China to give the administration time to develop separate duties. The wide array of exempted products, including inputs for consumer electronics, suggests a very broad consideration of item that could get hit later. 

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Tech companies, auto manufacturers, boat makers and cryptocurrency enthusiasts are among those who have registered complaints over potential levies, according to public comments on the probe, which started in April.

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The charges won’t just hit the chips themselves, but popular products including Apple Inc. and Samsung Electronics Co. smartphones and laptops. It’s even brought together rivals Tesla Inc., General Motors Co. and Ford Motor Co., which have all voiced reservations.

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Copper

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Copper duties are set to include all refined metal as well as semi-finished products used in power grids, data centers and the military, Bloomberg has reported. 

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The outcome of the investigation that started in March could have an outsize effect on consumer prices, because the metal is in automobiles, homebuilding materials, appliances and many other products. While domestic copper producers competing with foreign suppliers may benefit, US buyers of copper targeted with levies will face higher costs.

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Some of the nation’s largest copper miners met Thursday in Washington to discuss how best to message the administration on how to boost the domestic industry while also avoiding punitive tariffs that would harm production.

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Lumber 

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The administration’s lumber investigation is proceeding on a separate track from existing duties on the material from Canada — by far the US’s top source of imports.

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The probe is expected to conclude by summer’s end, trade attorney Luke Meisner said during a Wednesday panel.

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More than a dozen lawmakers have pushed the Commerce Department to implement tariffs of at least 60% on imported wood products, such as cabinets and vanities. Some have urged the administration to tariff cabinets at 100% tariffs.

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Republicans from Alabama, North Carolina and Pennsylvania have written letters to the administration that their home-state manufacturers are threatened by cheap foreign imports. Senator Tommy Tuberville said he expects the administration to fulfill their requests.

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Critical Minerals 

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The critical minerals investigation has proved difficult, according to people familiar with the process.

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The administration has made several moves to speed domestic mineral extraction and processing in order to reduce dependence on China. 

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But in the short term, there is little domestic industry to protect with tariffs. Only one US-based company operates a rare-earth mine and processing operation. America remains reliant on imports and tariffs could create supply crunches.  

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Commercial Aviation 

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The EU is among the economies negotiating with the administration for exemptions from possible tariffs on commercial aircraft and jet engines. The Commerce Department launched its investigation in May, which remains pending. 

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Others 

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The Commerce Department on Monday launched investigations into drones and polysilicon, a key material for solar panels, setting the stage for tariffs but likely at a later date. The department also started an investigation into medium- and heavy-duty trucks used in shipping in April that is ongoing.

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—With assistance from Jennifer A. Dlouhy, Michael Shepard and Michelle Fay Cortez.

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