The Good, the Bad and the Ugly -- Industries React to Sweeping U.S. Tariffs

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Researched by Industrial Info Resources (Sugar Land, Texas)--From metals and minerals to pharmaceuticals, Industrial Info is keeping a close eye on the impact of the sweeping U.S. tariffs that took hold last week.

The new tariffs, which took effect on Thursday, August 7, range by country from a baseline level of 10% to as high as 50%. They come after months of often-contentious trade talks between the Trump administration and various countries. President Donald Trump has held that the revenue from the tariffs will whittle down the government's $1.3 trillion budget deficit and rework trade relationships with nations that he says are taking advantage of the U.S.

The import tariffs are expected to raise at least $50 billion every month, Commerce Secretary Howard Lutnick told Fox Business on Thursday. Tariffs that already have been implemented produced $30 billion last month, Lutnick said, adding that potential tariffs on semiconductors and perhaps pharmaceuticals could cause the total proceeds to "ultimately reach $1 trillion."

Trump administration officials say U.S. consumers will feel little pain from the tariffs because foreign manufacturers will absorb the cost increases to maintain their U.S. market share. Some economists say otherwise, adding that the overall effective tariff rate could be the highest since the early 1930s.

The administration also has hiked tariffs on steel and aluminum imports to 50%, effective June 4, and placed a 50% tariff on copper products, effective August 1.

U.S.-based steel producers see the tariff as a good thing.

Lourenco Goncalves, the chief executive officer at steel producer Cleveland-Cliffs Incorporated (Cleveland, Ohio), said in July that Trump's policies were a net positive on his industry. For more on that, see July 23, 2025, article - Cleveland-Cliffs Sees Tariffs as a Win.

Joe Govreau, Industrial Info's vice president of research for the Metals & Minerals Industry, said the 50% copper tariff "will be big and impacts mostly downstream products like copper wire, cable, tube and pipe, as most of the upstream copper products like ore, and concentrate and refined copper, were exempt."

He added, "This will place inflationary pressure on project costs, especially for energy-transition projects, power infrastructure, transmission lines, and general residential and commercial construction projects, all of which utilize copper products."

For more information on the copper tariff, see August 1, 2025, article - Trump Slaps 50% Tariff on Copper Products, Excludes Ores, Refined Copper.

Earlier this year, the Trump administration also slapped a 25% tariff on foreign-made autos and car parts in an effort to bolster the domestic auto industry. This included a tariff on auto imports from Canada and Mexico that did not comply with the United States-Mexico-Canada Agreement (USMCA), but the majority of U.S. imports from Canada and Mexico that are USMCA compliant continued to enter the U.S. duty free, according to the Brookings Institution.

In the pharmaceuticals arena, Trump has floated the idea of as much as a 250% import tariff to prod more drug companies to establish their manufacturing facilities in the U.S.

Annette Kreuger, Industrial Info's vice president of research for the Pharma-Biotech Industry, said: "It is really up in the air, because nobody knows exactly how much the tariffs will be. Any tariff would obviously impact the industry and become evident in pricing to the consumer."

"The industry has been globally proactive in protecting the higher profit biological supply chain, but the impact on pharma standard drugs (blood pressure meds, antibiotics, etc.) could be huge," she continued. "These are low cost to produce but the bulk of ingredients are imported. Manufacturing plants cannot be built overnight, even with the addition of modular construction."

Kreuger said the U.S. "remains the biggest industry consumer as well as the No. 1 research location, and companies are warning that research could stall if severe tariffs are imposed. Despite the fears, there is an underlying belief that much of this is posturing for better trade agreements and to keep the huge announced investment in reshoring actually increasing and proceeding to construction."

Trump also has threatened to put a 100% tariff on imported semiconductors and chips, but says he would exempt companies already building or planning to build semiconductor plants in the U.S. For more on that, see August 8, 2025, article - Trump Signals 100% Tariff on Semiconductors, With Exemptions.

Meanwhile, from the perspective of the chemical industry, "owner companies are far more focused at the moment on the advanced timeline in which they have to satisfy requirements for tax incentives related to the blue and green commodities," said Trey Hamblet, senior vice president of research operations for Industrial Info. "Tariffs on chemicals imported as feedstock certainly increases production costs for the industry; however, overall U.S. chemical producers are a net exporter when you consider all commodities produced in the industry."

On the food and beverage front, Randy Godet, Industrial Info's vice president of research for the Food & Beverage Industry, said prices are likely to experience additional price hikes under the tariffs. Additional hikes price hikes are likely, from the perspective of the recent reciprocal tariffs as high as 50% on certain products (coffee, produce), on top of earlier tariff increases.

"In terms of the impact on capital expenditures, it does not appear that there will be in immediate impact on spending plans that are currently in development," Godet said.

A business survey by the Institute for Supply Management (ISM) indicated that economic activity in U.S. manufacturing contracted for the fifth straight month in July, as survey respondents indicated tariffs continued to hamper their operations. For more information, see August 5, 2025, article - ISM: U.S. Manufacturing Activity Contracts for Fifth Straight Month as Tariffs Continue.

The U.S. Chamber of Commerce, a big fan of Trump's pro-business growth agenda, nonetheless fretted about the impact of the tariffs on small businesses.

"The deregulatory efforts and the tax extensions are a great start, but the price increases that will inevitably follow these unprecedented tariff levels make the cost of living and shopping for everyday essentials more expensive...," said Chamber Executive Vice President Neil Bradley in a press release. He noted a recent U.S. Chamber report shows small businesses will face an additional tax increase of at least $200 billion as a result of the new tariffs.

Country by Country
Trump has delayed clamping higher tariffs on Mexican goods for 90 days to allow the country to reach a trade agreement with the U.S. But he has increased a 25% tariff on goods imported from Canada to 35%, saying the country hasn't done enough to curb the flow of fentanyl and other illicit drugs into the U.S. However, Canadian products that fall under the USMCA currently remain duty-free, provided that a certain percent of each product originates in North America. Canadian oil and gas are largely spared from U.S. tariffs.

A 90-day tariff pause on Chinese imports ends on Tuesday, but the pause may be extended to allow trade talks with the U.S. to continue.

The U.S. has imposed a 50% tariff on Brazilian goods, including coffee. Trump's executive order for the steep tariff cites "human rights abuses" in connection with the prosecution of former Brazilian President Jair Bolsonaro, a Trump ally. Bolsonaro is on trial for an alleged coup plot against current President Luiz Inacio Lula da Silva.

Trump also has threatened to double tariffs to 50% on imports from India because it buys oil from Russia.

In July, the European Union (EU) and the U.S. agreed to a 15% tariff on a range of EU goods in order to avoid a 30% tariff. For more on that, see July 29, 2025, article - Europe Seals 'Last-Minute' Tariff Deal with U.S.

Japan and South Korea also have reached deals with the U.S. to ensure a lower tariff of 15%.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).