Trump Threatens Sky-High Tariffs on Key Industries

Global Markets Reel as US President Targets Semiconductors and Pharmaceuticals

Global markets experienced significant downturns as US President Donald Trump signaled aggressive tariff hikes on critical sectors, including semiconductors and pharmaceuticals, potentially impacting South Korea’s export-reliant economy.

Tech and Pharma Stocks Plunge on Tariff Fears

South Korean tech giants saw their stock prices tumble following the announcement. Samsung Electronics’ shares dropped 1.29% to 67,000 won, falling below the significant 70,000 won mark. SK Hynix also experienced a decline of 1.61%, trading at 252,500 won, breaching the 260,000 won threshold.

The pharmaceutical sector was not spared, with major players like Samsung Biologics (-1.62%), Celltrion (-0.90%), and Yuhan Corporation (-1.39%) all registering losses, indicating a broad market anxiety.

President Trump Outlines Escalating Tariff Strategy

During a recent address, President Trump declared his intention to implement item-specific tariffs, stating, “At first, you will be charged a little tariff, but you will raise it to 150% in a year or up and a half, and then to 250%.” He indicated further details would be released “next week or so.”

Industry Leaders Express Grave Concerns

Industry insiders are voicing significant apprehension. Semiconductors represent a crucial export product for South Korea, and the prospect of escalating tariffs could place the nation’s economic stability under severe strain.

This move echoes broader trends of trade friction. For instance, the European Union’s own retaliatory tariffs on U.S. goods, implemented in response to American tariffs on steel and aluminum, demonstrate the potential for escalating trade disputes to impact global supply chains, as noted by the Congressional Research Service in a 2020 report (CRS, 2020).