The Trump administration has initiated investigations into pharmaceutical and semiconductor imports, signaling potential new tariffs on these critical sectors. These probes, launched on April 1 under Section 232 of the Trade Expansion Act of 1962, aim to assess national security risks associated with reliance on foreign production.
The investigations encompass a broad range of products, including computer chips, manufacturing equipment, consumer electronics containing chips, pharmaceutical drugs, and their ingredients. A 21-day public comment period is underway, with potential tariffs ranging from 10% to 25% expected to be announced around mid-May.
Industry groups have expressed concerns that such tariffs could lead to shortages and increased prices, urging for a gradual implementation to mitigate disruptions.
LVMH Reports Weaker-than-Expected Q1 Sales
Luxury goods conglomerate LVMH reported first-quarter revenue that fell short of expectations, with a notable 5% decline in its Fashion & Leather Goods division. The slowdown is attributed to reduced Chinese spending in Japan and a less favorable product mix. In response, Goldman Sachs lowered its price target for LVMH stock to €610, anticipating continued margin pressures.
