US businesses face fresh challenges as Trump imposes new reciprocal tariffs

U.S. President Donald Trump announced a slew of reciprocal tariffs on trading partners on Wednesday, the latest in a series of extensive duties imposed since his return to the White House earlier this year.

The U.S. will now impose a 10% baseline tariff on all imports to the country effective April 5 and higher duties on several of its biggest trading partners.

The levies could be particularly damaging for U.S. companies in sectors already slapped with duties.

The following U.S. business sectors are most exposed to Trump’s reciprocal tariffs:

AUTOS & ELECTRIC VEHICLES

Trump announced 25% tariffs on auto imports last week on all cars and parts made outside the United States. The duties will go into effect on Wednesday.

The Detroit Three automakers – Ford, General Motors and Stellantis – have a much bigger exposure to manufacturing outside of the U.S. vis-à-vis Elon Musk’s Tesla , and face a bigger hit.

CHIPS

Semiconductors were not named in the list of goods subject to reciprocal tariffs, despite Trump stating in February that he intended to impose tariffs of around 25% on the imports of semiconductors and related products.

The 34% tariffs on China, however, could prove disruptive for chips, PCs, semiconductors and server manufacturers, industry experts said.

U.S. chip companies and artificial intelligence networking equipment makers have complex and diverse supply chains spanning multiple countries, with executives saying the near-term fallout from any tariffs will be “uncertain.”

Industry heavyweight Nvidia’s CEO has said the company plans to move manufacturing domestically in response to higher tariffs but expects little short-term impact.

PHARMACEUTICALS

Pharmaceutical products, long spared from trade wars due to the potential harm, were exempt from Wednesday’s announcement, a temporary relief for drugmakers.

U.S. drugmakers have been lobbying Trump to phase in tariffs on imported pharmaceutical products in hopes of reducing the sting from the charges and to allow time to shift manufacturing.

Trump is planning other tariffs targeting pharmaceuticals, an official said.

PC MAKERS

PC makers such as Dell face the risk of potential price increases driven by the tariffs on China.

Research firm International Data Corporation lowered its traditional PC forecast for 2025 and beyond in February due to tariff-related risks.

RETAIL & E-COMMERCE

Walmart, Target, Best Buy and several other U.S. retailers have been bracing for a likely hit from the tariffs, especially on key supplier China. The companies have been piling pressure on suppliers over prices on categories ranging from toys to cake pans.

Trump imposed 46% tariff on Vietnam, which will likely impact apparel and sportswear makers from Nike to On Holding, as they source about half of their products from the country.

Alcohol makers — including Brown-Forman , Diageo , Anheuser-Busch, Constellation Brands, Molson Coors Beverage — have also been caught in the cross-fire, following the tariffs on goods from Canada, Mexico and China imposed in February.

Mexico and Canada avoided fresh tariffs on Wednesday with Trump exempting the United States’ top trading partners from his new 10% global tariff baseline, although previous duties remain in place.

Separately, the removal of the trade loophole called “de minimis”, which allows goods valued at less than $800 to enter the U.S. duty-free and with minimal inspections, will hit discount-price online retailers as well.

E-commerce players such as Shein, PDD Holdings-owned Temu and Alibaba’s AliExpress all rely on the de minimis exemption to keep prices low.

ENERGY & RESOURCES

Import of oil, gas and refined products was exempted from Trump’s sweeping new tariffs, the White House confirmed on Wednesday.

But, separate tariffs on critical minerals were under consideration. Uranium prices for U.S. companies could rise by 10% if tariffs are implemented, said Canadian uranium miner and producer Cameco, weighing heavily on the country that relies primarily on imports of the ore.

BANKS

The industry was expected to benefit from the Republican Party’s sweeping election victory in November, with investment banks anticipating a rise in dealmaking and capital markets activity.

However, economic uncertainty – partly driven by tariffs – has dampened that optimism.

The KBW Regional Banking Index has fallen nearly 7%. Profit estimates are at risk as uncertainty curbs sentiment and prompts businesses to adopt a wait-and-see approach, analysts at Raymond James warned in a note on Tuesday.

TRAVEL

Tourists and companies have reduced spending amid the rising economic uncertainty, forcing carriers to cut their first-quarter expectations. Some airlines have also started culling flights to avoid lowering fares and to protect margins.