MW Pharma, chips, other sectors look set to get hit with new tariffs soon, even as a court blocks other Trump levies

By Victor Reklaitis

Effective U.S. tariff rate falls to an estimated 7% from about 18%, but it may be headed higher again. Here's why.

A federal court has blocked the bulk of U.S. President Donald Trump's tariffs, but the ruling from the Court of International Trade doesn't affect the import taxes that he's slapped on particular sectors - and that he's expected to impose on other industries.

"We expect the pace of sector-based tariffs to accelerate, with additional measures likely to be announced soon," strategists at ING said in a note Thursday. "In this regard, we warn against too much relief or even complacency at this point."

The main U.S. stock gauges SPX DJIA COMP opened higher Thursday, boosted by enthusiasm over the court ruling, but recently were trading mixed. The average effective U.S. tariff rate now will be around 7%, down from about 18% a day ago, according to estimates from the Budget Lab at Yale.

Trump's existing sector-based tariffs - his 25% duty on imported steel and aluminum and his 25% levy on imported automobiles and many auto parts - are unaffected, as they were issued under a different rule related to national security, Section 232 of the Trade Expansion Act of 1962.

A number of other sectors are also expected to get hit with Section 232 tariffs, and the required investigations for such levies have been under way for weeks or months. Additional sectors look set to face new tariffs as well as a result of ongoing investigations based on a rule related to unfair trade practices - Section 301 of the Trade Act of 1974.

The ING strategists said the sectors that could face new tariffs due to these investigations include pharmaceuticals PJP, semiconductors SMH, shipbuilding, medium- and heavy-duty trucks, critical minerals, seafood, cranes, copper (HG00), lumber and aircraft. They have put together a chart, below.

Apple Inc. $(AAPL)$, Samsung Electronics Co. (KR:005930) and other makers of smartphones appear likely to get caught up in the much-anticipated Section 232 tariffs for semiconductors.

Trump last week warned these companies that they could face import taxes of at least 25%, and analysts viewed his remarks as being related to his administration's efforts around imposing tariffs on semiconductors. The Trump administration in April exempted smartphones and other electronics from some recently announced tariffs, but officials at that time stressed that those products soon would be subject to their own chip-focused duties.

Below is a table giving the current state of the Trump administration's taxes on U.S. imports.

Trump's tariffs

   Target                                  Status of tariffs 
   Apple, Samsung and their competitors    Apple, Samsung and any maker of smartphones that aren't manufactured in the U.S. could face a 25% tariff at the end of June, Trump said last week. This tariff threat appears to be tied to his administration's efforts to impose Section 232 tariffs on semiconductors and related electronic products. 
   Other key industries or sectors         Section 232 tariffs of 25% are in effect for 
   China                                   A court ruling on Wednesday has blocked Trump's tariffs on China, but his administration has filed an appeal. Before the ruling, Trump's tariff rate for China had 
   Canada and Mexico                       A court ruling on Wednesday has blocked Trump's tariffs on Canada and Mexico, but his administration has filed an appeal. Before the ruling, a 25% tariff had been in effect, with exemptions for USMCA-compliant goods (an estimated 
   E.U., many other U.S. trading partners  A court ruling on Wednesday also has blocked Trump's tariffs on other U.S. trading partners besides China, Canada and Mexico, but the administration has filed an appeal. Before the ruling, other trading partners had been facing a 10% tariff following a 
   U.K.                                    The Trump administration has been talking up the potential for trade deals with other countries, and it actually made a deal with the U.K. With that deal, the U.S. kept a 10% tariff in place on most U.K. imports, but 

-Victor Reklaitis

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May 29, 2025 12:13 ET (16:13 GMT)

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