The Trump administration, in a move to expand its tariff policy, launched new investigations into the import of computer chips, semiconductor equipment and pharmaceuticals.
The US department of commerce published the notices on the federal register late on Monday, opening a three-week window for public comment, though no formal announcement had been made prior.
While US President Donald Trump paused several planned tariff hikes last week for a 90-day period, this did not apply to Chinese imports. He also made clear that tariffs on pharmaceuticals, lumber, copper, and semiconductors are still very much on the table.
The department of commerce said the investigations fall under section 232 of the trade expansion act of 1962, which allowed the president to impose tariffs for national security reasons. Officials will examine whether the US’s dependence on foreign sources for essential goods such as computer chips, critical to everything from smartphones to cars and refrigerators, pose a risk to national security.
The probe will analyse whether domestic production can realistically meet demand, as well as the implications of outsourcing chip assembly, testing, and packaging. It will also explore concerns over foreign government subsidies, unfair trade practices, and over-reliance on production hubs like Taiwan and South Korea.
Commerce secretary Howard Lutnick confirmed that while electronics were exempt from broader "reciprocal" tariffs of up to 50%, specific sectors, including semiconductors, pharmaceuticals, and automobiles, would face their own targeted tariffs.
“Those are not up for negotiation,” Lutnick told ABC News. “They are just going to be part of making sure we reshore the core national security items that need to be made in this country. We need to make medicine in this country. We need to make semiconductors.”
The pharmaceutical investigation covers not just finished drugs but also the raw ingredients used in their production. President Trump reiterated his intention to impose tariffs on pharmaceutical imports, saying on Monday, “Yeah, we’re going to be doing that.”
He added that it is going to happen in the “not too distant future.”
“We’re doing it because we want to make our own drugs.”
Although the US is a key player in global semiconductor production, it depends on Taiwan and South Korea for cutting-edge chips. Taiwan alone accounts for 92% of advanced logic chip fabrication capacity, according to the international trade administration.
The US department of commerce published the notices on the federal register late on Monday, opening a three-week window for public comment, though no formal announcement had been made prior.
While US President Donald Trump paused several planned tariff hikes last week for a 90-day period, this did not apply to Chinese imports. He also made clear that tariffs on pharmaceuticals, lumber, copper, and semiconductors are still very much on the table.
The department of commerce said the investigations fall under section 232 of the trade expansion act of 1962, which allowed the president to impose tariffs for national security reasons. Officials will examine whether the US’s dependence on foreign sources for essential goods such as computer chips, critical to everything from smartphones to cars and refrigerators, pose a risk to national security.
The probe will analyse whether domestic production can realistically meet demand, as well as the implications of outsourcing chip assembly, testing, and packaging. It will also explore concerns over foreign government subsidies, unfair trade practices, and over-reliance on production hubs like Taiwan and South Korea.
Commerce secretary Howard Lutnick confirmed that while electronics were exempt from broader "reciprocal" tariffs of up to 50%, specific sectors, including semiconductors, pharmaceuticals, and automobiles, would face their own targeted tariffs.
“Those are not up for negotiation,” Lutnick told ABC News. “They are just going to be part of making sure we reshore the core national security items that need to be made in this country. We need to make medicine in this country. We need to make semiconductors.”
The pharmaceutical investigation covers not just finished drugs but also the raw ingredients used in their production. President Trump reiterated his intention to impose tariffs on pharmaceutical imports, saying on Monday, “Yeah, we’re going to be doing that.”
He added that it is going to happen in the “not too distant future.”
“We’re doing it because we want to make our own drugs.”
Although the US is a key player in global semiconductor production, it depends on Taiwan and South Korea for cutting-edge chips. Taiwan alone accounts for 92% of advanced logic chip fabrication capacity, according to the international trade administration.
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