Trump says he will introduce 25% tariffs on autos, pharmaceuticals and chips

The potential imposition of these tariffs could lead to increased costs for consumers and businesses that rely on imported automobiles, semiconductor chips, and pharmaceutical products. This could negatively impact companies within those sectors as well as overall stock market performance due to uncertainties in international trade. With possible retaliatory measures by trading partners, the markets might react negatively to this news.

The pharmaceutical and semiconductor sectors, particularly companies that rely heavily on imported materials (like Pfizer or AMD), may see a decline in stock prices as higher tariffs can squeeze profit margins. On the other hand, companies that focus on U.S. manufacturing could benefit from less competition and increased local investments. However, the immediate reaction might be negative due to disruption fears.

Automakers like Ford could also face negative sentiment since higher costs on imports could lead to increased vehicle prices domestically, impacting sales. Yet, these companies may seek to increase production locally to mitigate tariff impacts, leading to a longer-term strategy adjustment.