Tariff Wrap (2 May): Don’t forget we’re still waiting for pharma, auto & copper

As May of 2025 kicks off, it’s worthwhile to consider the rollercoaster ride that has been the last…90 days.

On April 10, Donald Trump suspended ‘reciprocal’ tariffs, from that date, also for 90 days – in other words, around three months. So we’re nearing the one month mark of that suspension.

(It’s worth noting existing tariffs such as those for steel and aluminium remained in effect, at least following the earlier pause on larger tariffs for Canada and Mexico.)

To date, Trump has said he will water down the heaviest tariffs on China but we don’t know beyond a shadow of a doubt if China and the Trump Administration are actually having talks or not.

(At the same time, China’s CCTV this week claimed the US reached out to Beijing to begin negotiations.)

Meanwhile, a number of countries outside of China have reportedly begun negotiations with the Administration.

With that said, China has this week produced a list of US-made goods it will exempt from its own 125% tariffs on the US.

Tariff ease market reprieve

Most recently, earlier this week, Trump announced that he would water down tariffs on automakers, apparently having become persuaded to accept that, no, not all car parts can be made in the USA.

That, coupled with key earnings reports on Wall Street, helped boost sentiment on the US indexes this week.

But in the background, concerns are still rife.

Jeff Bezos was this week thrown into the fire when the Trump admin accused Amazon of a “political” decision to display how much tariffs were increasing prices on everyday items; Temu, domiciled in China, has already started to do so.

(One can’t help but observe the decision to omit key data is a fundamentally Chinese-government-style decision.)

And, of course, Seattle Port sat empty at one point in very recent history, while volumes at the Port of LA remain significantly suppressed. That latter port is where the majority of Chinese goods arrive on-board.

So where does that leave us now?

There are still a number of tariff announcements that we should expect to see, at least, based on what information is available to the public at this time.

(The public, apparently, are getting a worse deal compared to Wall Street insiders, who were courted by the Trump Administration in the last week as part of an apparent reassurance campaign.)

Here’s a list of where those tariffs currently stand, for pharmaceuticals, copper, and microchips.

• Copper: While copper was exempt from the most recent tariff announcements, the Trump Administration continues carrying out a ‘probe’ into the electrification metal. Major nation-state producers Copper, Chile and Peru have ‘pushed back’ against that probe.
• Microchips: Also called semiconductors, both Trump and Commerce Secretary said in mid-April that there will be tariffs on microchips, at some point. It’s unclear if recent watering down comments with regards to auto tariffs and China wholemeal have altered this calculus.
• Pharmaceuticals: A big one ASX investors are watching with regards to the local healthcare sector, Trump continues to imply that there will be tariffs on pharmaceuticals, with predictable suggestions those who manufacture onshore will receive kinder treatment.

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