Trump eyes drug, chip tariffs by month-end

U.S. President Donald Trump said Tuesday he is likely to impose tariffs on pharmaceuticals as soon as the end of the month, with levies on semiconductors potentially following a similar timeline.

“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 as he returned to Washington following an AI summit in Pittsburgh.

He added that tariffs on chips would follow a “similar” timeline and described them as “less complicated” to implement, though he did not elaborate.

Trump previously announced plans for a 50% tariff on copper and launched a Section 232 investigation into drug imports, citing national security threats. The pharmaceutical duties could rise as high as 200% after the initial phase-in, posing risks to companies like Pfizer (NYSE:PFE), Merck (NYSE:MRK), and Eli Lilly (LLY), which rely on overseas production. Semiconductor tariffs are expected to affect both chipmakers and electronics manufacturers like Apple (NASDAQ:AAPL) and Samsung (OTCPK:SSNLF).

Trump said he’s in talks with five to six countries and may strike “two or three” deals before his reciprocal tariffs take effect August 1, adding that a deal with India was among the most likely. “I would say India, and we have a couple of others, but I have to tell you, for the most part, I’m very happy with the letters,” he said.

Related chip stocks: AI chipmakers Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), Qualcomm (QCOM), Intel (NASDAQ:INTC), Taiwan Semiconductor Manufacturing (NYSE:TSM), Micron Technology (NASDAQ:MU), Intel (NASDAQ:INTC), Applied Materials (AMAT), KLA (KLAC), ASML (ASML) and Lam Research (LRCX).