Trump's Tariff Exemptions Include Semiconductors, Pharmaceuticals, Oil And More

President Donald Trump on Wednesday announced a slew of tougher-than-anticipated tariffs, but there are some notable exemptions to the steep levies. 

Here’s a look at which products and sectors are excluded from the reciprocal tariffs: 

Semiconductors: Semiconductors were exempted from the sweeping new tariffs due to their critical role in many technologies. However, the sector was deep in the red in Thursday’s trading with shares of Broadcom, Inc. AVGO down 6.78% and ASML Holding N.V. ASML down 3.69%. 

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Pharmaceuticals: Trump excluded pharmaceuticals from the new tariffs, likely a relief for the industry that had been under pressure following the president’s prior comments suggesting a 25% tariff on pharmaceutical imports. 

“The United States can no longer produce enough antibiotics to treat our sick,” Trump said Wednesday. “We have a tremendous problem, we have to go to foreign countries to treat our sick. If anything ever happened from a war standpoint, we wouldn’t be able to do it.”

Pharmaceutical stocks are defying Thursday’s broad market drop with shares of AbbVie Inc. ABBV and Johnson & Johnson JNJ both in the green in mid-morning trading. 

Lumber: Lumber is another product excluded from Trump’s tariff plan, for now. The administration said it is investigating how reliance on imported lumber impacts national security and economic stability. Exemptions have been granted to avoid immediate disruptions in supply chains critical to construction and defense in the meantime. 

Gold, Copper: Certain metals and minerals including copper, gold and others not found in the U.S. were also exempted from the reciprocal tariff plan. 

Gold dropped more than 3%, falling below $3,060 per ounce on Thursday after touching a new record high above $3,160. The SPDR Gold Trust ETF GLD, tracking the price of gold, was down only slightly, bucking the broader market declines. 

Energy: Oil, gas and refined products imports were exempted from the sweeping new reciprocal tariffs, the White House said on Wednesday. 

Shares of the United States Oil Fund ETF USO fell 7.8% on Thursday, however, as the sweeping tariff plan could threaten global demand. 

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Photo: Shutterstock/Alones