American companies have been left reeling after US President Donald Trump rolled out a sweeping set of tariffs targeting over 100 nations – but a glimmer of hope has emerged. Trump now says he may consider exempting certain US firms from the financial brunt of the policy.
In a statement made on Wednesday evening (local time), just hours after announcing a 90-day pause on the implementation of the reciprocal tariffs, Trump revealed that his administration is actively considering exemptions for some “large” American companies that have been disproportionately affected.
“I’ll take a look at it as time goes by. We’re going to take a look at it,” Trump told reporters. “There are some that have been hard — there are some that, by the nature of the company, get hit a little bit harder, and we’ll take a look at that.”
When pressed on how the administration would determine which firms might receive an exemption, the President gave a typically off-the-cuff response: “You almost can’t take a pencil to paper. It’s really more of an instinct than anything else.”
While lacking in concrete detail, his remarks have offered a momentary sigh of relief to the US business community, many of whom have voiced deep concerns over the sweeping scope of the tariffs.
The scope of the tariff war
President Trump first announced his reciprocal tariff regime on 2 April, imposing a baseline 10% duty on all imported goods and additional country-specific tariffs. The list of affected countries spans over 100, including key trading partners such as Germany, Japan, Canada, and notably, India and China.
India was slapped with a “discounted” tariff rate of 26%, which Trump described as a fairer response to India’s existing 52% tariff on American goods. Many other nations have since entered talks with the US, some managing to negotiate their tariffs down to zero in a bid to maintain favourable trade terms.
China, however, has chosen the route of retaliation. In response to US tariffs, Beijing imposed its own reciprocal measures. Trump promptly responded with a striking 104% tariff on Chinese imports, further escalating tensions between the two economic giants. As of now, the tariffs targeting China remain fully in effect, with no pause or exemptions being considered.
Exemptions and industries in the crosshairs
Initially, the US administration had offered exemptions to critical industries, including semiconductors and pharmaceuticals. These sectors were viewed as strategically vital to the American economy and less reliant on imports from nations affected by the tariffs.
However, the President raised eyebrows earlier this week when he hinted at a change of course. Speaking at a gala dinner on Tuesday night, Trump said, “major” tariffs on pharmaceuticals could be introduced “very soon”, reversing what was assumed to be a safe haven for one of America’s most profitable sectors.
More Read
This surprise announcement sent shockwaves through pharmaceutical markets, with industry leaders warning that such tariffs could trigger increased drug prices domestically and damage competitiveness abroad.
Relief or reprieve?
For now, US companies will be watching closely to see whether Trump follows through on his offer to review individual cases for tariff exemption. His reliance on “instinct” rather than strict criteria, however, has raised eyebrows among analysts and critics, who argue that such a subjective approach could breed inconsistency and favouritism.
Nevertheless, with the 90-day pause now in place, there is a brief window for affected companies to make their case to Washington. Whether this leads to meaningful relief or simply delays the inevitable financial burden remains to be seen.
One thing is clear – Trump’s tariff strategy continues to stir debate, both at home and abroad, as global markets attempt to recalibrate in an increasingly protectionist environment.
