Trump’s tariffs have already started a war between countries that has also affected stock markets and investors. However, the situation is certainly not disclosed, as on Monday, 14th of April 2025, the PM’s administration launched investigations for importing the goods. It includes chip-making equipment and pharmaceutical ingredients. Tariffs on semiconductors can be a bad influence on the overall tech industry of two global powers, which are China and the U.S. itself.
To clarify, the U.S. heavily depends on the semiconductor imported from Asia, especially Taiwan. Certain electronic products like laptops, smartphones, and drives that have been temporarily granted tariffs, semiconductors remain largely exposed to high import duties. The situation has alarmed the U.S. tech sector, which highly relies on the global supply chains. It acquires critical components like memory chips and flat panel displays. The tech industry is assuming the tariffs on semiconductors may lead to delayed shipments, higher production costs, and ultimately expensive consumer products.
Along with tech firms, the pharmaceutical industry is also facing a similar issue. Lack of clarity in the long-term tariff policy of Trump is creating uncertainty for American tech and drug firms.
Trump’s Tariff Flood Is Leading to a Global Economic Issue?
The European stock market certainly rose up on Monday morning after Friday’s official announcement that some of the products would be exempt from tariffs up to 145%. But the situation is still not under control, as products would be subjected to semiconductor tariffs, said US officials.
“The markets are going to boom,” “the country is going to boom,” and “the stock is going to boom,” says Donald Trump. He also adds that tariffs will bring a golden age to the US economy. Such decisions have led China to call on Trump and ask for complete cancellation of his tariff regime while returning to the right path of mutual respect.
Could the situation lead to recession if it lasts long? Trump imposed a tariff amounting to 54% on imports of product from China at the beginning of April, before escalating to the current 145% rate. The war certainly received a twist when China imposed levies of 34% on US goods before raising it to 84% and then 125%, which took effect on Saturday.
The situation is already showing signs of economic recession. Every three months, the government of the U.S. updates its measures of the economy, that is its Gross Domestic Product (GDP). Furthermore, some economic models already suggested the GDP dwindled in the first three months of 2025.
Trump’s interventions have led to massive fluctuations in the stock market and raised fears of a decreased global trade that could lead to a knock-on effect on jobs and individual economics.
Wrapping Up
Trump’s tariff game has already affected the U.S. and China relationship as the war is not on the verge of negotiations. Whether tech industry, pharmaceutical industry, or stock market, the raise in tariff has an immense effect on different aspects of the U.S. economy. The tariff decisions of Trump and China’s backlash has been creating massive fluctuations in the industries and stock market.
About The Author
