Tariffs & Trade Policy

Steel Supply Chain

Section 232 steel tariffs have raised US input costs and created distortions in global steel trade flows.

Steel tariffs (25% on most imports to the US) have bifurcated the market. Domestic US producers benefit from protection; downstream users (autos, construction, appliances) face higher input costs. EU carbon border adjustment adds a parallel compliance cost layer.

Semiconductor Supply Chain

Export controls and tariffs on semiconductor equipment and advanced chips are fragmenting the global supply chain.

US export controls on advanced chip design tools (EDA software), high-end GPUs, and lithography equipment to China are creating parallel semiconductor ecosystems. CHIPS Act subsidies are driving near-term fab investment but adding long-term structural cost premiums for non-Chinese supply.

Battery Supply Chain

Tariffs on Chinese battery cells and components are raising EV production costs outside China.

Chinese battery manufacturers (CATL, BYD) can produce at cost structures 30–40% below Western competitors. US tariffs of 100% on Chinese EVs and 25% on batteries are providing temporary protection but not closing the underlying cost gap.

Pharmaceutical Supply Chain

Proposed pharmaceutical tariffs on API imports from China and India create supply security concerns.

The US imports ~70–80% of active pharmaceutical ingredients from China and India. Proposed tariffs would raise drug manufacturing costs and incentivise reshoring — but domestic API manufacturing capacity is a decade away from meaningful scale.

Copper Supply Chain

Copper tariffs create regional price distortions; US domestic copper benefits, downstream users pay more.

Proposed US copper tariffs (Section 232) would raise costs for electrical equipment, construction, and EV manufacturing — sectors the US is simultaneously trying to build out. The tension between protecting mining and enabling downstream manufacturing is unresolved.