Trump Tariffs Live Updates: Trump Signals Drug Tariffs May Come By Aug. 1, Announces Deal With Indonesia

President Trump has flagged that US tariffs on pharmaceutical imports are likely to kick in on Aug. 1, with duties on semiconductors also in line for implementation then too.

“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump told reporters on Tuesday.

The timing means the drug and chip levies would come in alongside the paused "reciprocal" tariffs laid out in April.

Also on Tuesday, Trump said his team has struck a trade deal with Indonesia that will see goods from the country face a 19% tariff.

The announcement comes after Trump unveiled a new batch of letters to over 20 trade partners outlining tariffs on goods imported from their countries beginning in August. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country's domestic politics.

Indonesian goods faced a 32% tariff rate on Aug. 1, according to the July 7 letter Trump sent to Indonesia's President Prabowo Subianto. Trump on Tuesday said US goods would face no import tax in Indonesia.

Trump has also escalated tariff tensions with Canada, Mexico, and the European Union recently. Last week, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU.

The EU has been preparing options for a trade deal, while also preparing an extensive list of counter-tariffs that would affect 72 billion euros ($84 billion USD) of American products should talks fail.

"There will be a huge impact on trade,” the EU's chief negotiator said Monday. "It will be almost impossible to continue trading as we are used to in a transatlantic relationship."

As markets focus on US talks, here is where things stand with other key partners:

• Vietnam: Trump said a deal with Vietnam will see the country's imports face a 20% tariff — lower than the 46% Trump had threatened in April. He also said Vietnamese goods would face a higher 40% tariff "on any transshipping" — when goods shipped from Vietnam originate from another country, like China. According to reports, Vietnam's leadership was caught off guard by Trump's announcement last week that it agreed to a 20% tariff and is now seeking to lower the rate.

• India: Trump's tariffs on Brazil have raised the stakes for India, another member of the BRICS coalition. Bloomberg reported that the countries are working toward a framework deal that could see US tariffs on goods from India drop below 20%.

• Russia: Trump threatened "secondary" tariffs on Russia of up to 100% as he attempts to pressure the country into negotiating an end to the war in Ukraine.

Source: Yahoo Finance