Warning: These Industries Face 25% Tariffs

After the U.S. delayed threats of tariffs against Canada and Mexico from the start of this month to March 1, 2025, that 25% rate is re-emerging. On Tuesday, President Trump said that he planned to add tariffs of around 25% on automobiles. Similarly, he plans to impose duties of that size on imports from the semiconductor and pharmaceutical sectors.The drug sector already traded sharply lower, ahead of the news. For example, Merck (MRK) shares broke down below the $100 support level, closing at $83.29. Although MRK stock fell primarily after the firm issued a disappointing outlook for 2025, tariffs will not help the firm.Bristol-Myers (BMY) peaked at around $60 recently, closing below $55. Conversely, drug companies that have diversified products are in a trading range. That includes Proctor & Gamble (PG) and Johnson & Johnson (JNJ).In the chip sector, Trump wants to give companies time to set up factories in the U.S. That way, they would avoid tariffs. Investors should remember that Foxconn mostly abandoned its $10 billion Wisconsin project in 2021. The Chinese firm cut its investment to just $672 million. As a result, the firm added only around 1,400 jobs, instead of the planned 13,000.Your TakeawayVolatility in the three sectors may increase in the next few weeks. Investors may take advantage of any panic selling to initiate a position.