President Trump announced Monday, soon he will be announcing tariffs targeting autos and pharmacuticals as well as other sectors. This follows their recent announcement of steel and aluminum tariffs. Trump claims to announce pharmaceuticals because he says "we have to have pharmaceuticals". Trump also announced Monday that there are plans to add lumber and semiconductor industries to his list saying tariffs would come down the road. Trump also states at the same event that the reciprocal tariffs "may give a lot of countries breaks". Trump states that these tariffs are going to be imposed on April second but many people are skeptical. With all of the different tariffs President Trump has proposed it is hard for consumers to have any certainty, as well as investors in the market there is a lot of uncertainty. As we have learned in class if these tariffs are announced we will begin to see almost immediate reaction from the economy, resulting potentially higher prices for consumers in auto and pharmaceuticals.
https://www.cnbc.com/2025/03/24/trump-tariffs-autos-pharmaceuticals-sectoral-reciprocal.html
Trump's pledge to impose tariffs on autos and pharmaceuticals definitely increases uncertainty for both consumers and investors. Tariffs often result in higher prices which are felt by businesses and then the consumers. It will be interesting to see if they get rolled out as planned or not.
ReplyDeleteIts interesting how Trump is expanding tariffs to autos and pharmaceuticals, claiming it’s necessary for the US. With so many tariff plans, do you think this will create more market uncertainty or actually boost domestic production?
ReplyDeleteHow many of these tariff plans do you think will actually be implemented. Since businesses will need time to preemptively adjust pricing to account for tariff costs, they will need to wait until his policies are set in stone. These must be some anxiety from firms since it seems that he is constantly shifting his tariff policies.
ReplyDeleteWith hospital consolidation and fee-for-service models driving costs up, I wonder how far site-neutrality and price transparency can really go without more structural changes. Is disruption from outside players the only real pressure point left?
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