Donald Trump warns of unprecedented tariffs on pharma and chips next: Sensex, Nasdaq crash amid fears of global economic fallout
President Trump is set to announce unprecedented tariffs on pharmaceutical and semiconductor imports. This follows sweeping duties already imposed on over 180 countries, including a 27% flat tariff on Indian goods. Global markets reacted sharply
US President Donald Trump has indicated that fresh tariffs on pharmaceutical and semiconductor imports are under active consideration, hinting at an aggressive shift in trade policy. Speaking to reporters aboard Air Force One on Thursday evening (IST), Trump said the United States would be announcing tariffs on pharmaceutical imports soon ¡ª ones that could be unprecedented in scale.
While he did not specify the exact timeline, Trump confirmed that tariffs on semiconductors would take effect ¡°very soon¡±. He described pharmaceuticals as a separate category and said a decision was under review.
¡°Pharma is going to start coming in, I think, at a level that we haven¡¯t really seen before,¡± Trump stated. Despite concerns around the ongoing market volatility, the president appeared confident about the economic impact of the upcoming measures. ¡°It¡¯s going to make our country very rich,¡± he said. Trump added that countries were now willing to cooperate due to the US¡¯s dominant position in trade negotiations.
Massive tariff wave announced by US
Just hours before these statements, the US administration had declared a universal 10 per cent tariff on imports from over 180 countries, effective 5 April. For specific sectors, the rates were higher. Automobile imports faced a steep 25 per cent tariff from 3 April. Imports from India were hit particularly hard, with a flat 27 per cent tariff.
To point it out, the original tariff order had excluded pharmaceuticals and semiconductors. But Thursday's comments suggest that this exclusion may no longer hold ¡ª especially for pharmaceutical products.
Indian stock market feels the heat
As news of potential pharmaceutical tariffs spread, Indian markets took a hit. The Sensex dropped by 800 points, falling to 75,500, while the Nifty 50 fell to 22,940 by 10:40 am. The losses were a stark contrast to a calm opening earlier in the day.
On 3 April, the Nifty 50 had closed 82.25 points lower at 23,250.10, even though a bullish candlestick formation had initially signalled some strength. The positive momentum was cut short by concerns over the 27 per cent tariff on Indian imports.
Sectors like IT and auto were among the worst hit due to worries about the US economy and disruptions in global supply chains. Pharmaceutical stocks, which had previously gained after being excluded from the tariff list, also turned volatile after Trump¡¯s comments about an upcoming policy change.
Global markets roiled by US tariffs
Trump¡¯s announcement led to a sharp global reaction. In the United States, the S&P 500 plunged 4.84%, closing at 5,396.52, showing its worst single-day drop since June 2020. The Dow Jones Industrial Average fell by 1,679.39 points (3.98%), ending at 40,545.93. The Nasdaq Composite recorded its steepest drop since March 2020, plummeting 5.97% to 16,550.61.
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Nancy Jaiswal is a journalist who started her career in reporting and has covered both hard and soft news. From serious city news developments to lighthearted lifestyle pieces, she has written on almost everything hapenning in India (except maybe alien invasions¡ªyet!). For her, writing isn¡¯t just work; it¡¯s a passion, an obsession, and sometimes the reason she forgets to reply to texts.
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