Which products will become more expensive with the next round of tariffs in the United States?

President Trump is further advancing a new tariff plan in the United States, shifting from comprehensive reciprocal tariffs to industry-specific tariffs. Some industries are facing Section 232 investigations, and the implementation of new tariffs may make goods in these industries more expensive.

Trump’s industry investigations are based on Section 232 of the Trade Expansion Act of 1962, which allows the government to protect domestic industries for national security purposes.

The U.S. Department of Commerce has previously initiated Section 232 investigations for copper and lumber. According to the Federal Register announcement on April 14th, earlier this month, the Trump administration has started investigations into the pharmaceutical and semiconductor industries.

While the U.S. has not disclosed which key minerals will be investigated, the investigation into copper is already underway. Copper is a key element in industries such as electrification and defense in the U.S., with about 50% of copper relying on imports.

With the growth of energy-consuming industries like artificial intelligence and blockchain, the demand for copper is expected to increase, leading to price hikes.

Softwood is a critical material for home construction, with 30% of the U.S. demand relying on imports to meet needs. Home builders warn that tariffs on softwood and other materials could lead to price hikes in lumber, exacerbating the housing affordability crisis.

The rising import costs of lumber will also impact the prices of furniture and even toilet paper. In support of the U.S. lumber industry, the Trump administration recently ordered the opening of half of the national forests for logging.

Diederik Stadig, an economist at ING Health Economics, wrote last week that while Trump aims to lower drug prices and support U.S. manufacturing, the significant increase in production of generic drugs is unrealistic even if brand drug production gradually shifts to the U.S.

The construction of new facilities takes approximately 10 years. Tariffs will raise healthcare costs, affecting the affordability of medications. Under a 25% tariff, common drugs will increase from 82 cents per pill to 94 cents, costing an average of $42 more per year. The costs of complex prescription drugs like cancer treatments could increase by $8,000 to $10,000.

Medical equipment, routers, laptops, smartphones, cars, appliances, and LED light bulbs all contain semiconductor chips. A new car may require thousands of chips. Semiconductor chips are dubbed the “crude oil of the 21st century.”

The chip shortage that occurred during the pandemic led to supply shortages in products like cars, raising inflation. Currently, the U.S. lacks electronic assembly capacity. Chips produced in the U.S. need to be shipped to Taiwan, South Korea, China, or Mexico for assembly into finished products. When these products are imported back into the U.S., they will face tariffs, leading to price increases.