Trump Investigates Chip, Drug Imports for Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration launched new investigations into computer chip and pharmaceutical imports as part of its plan to impose additional tariffs. Despite a 90-day pause on broader tariff hikes, targeted industries are still under review for national security concerns. Public comments are now open as the U.S. weighs tariffs on crucial sectors.
U.S. Tariff Investigations: Quick Looks
- What’s New: Probes launched into imports of computer chips, chip-making equipment, and pharmaceuticals
- Who’s Involved: U.S. Commerce Department under President Donald Trump
- Why It Matters: National security risks cited under Section 232 of the Trade Expansion Act
- Target Sectors: Semiconductors, active pharmaceutical ingredients, auto parts
- Next Steps: Public comment period open for three weeks
- Tariff Pause: 90-day pause on broader tariffs still in effect, except for China
- Mexico Update: U.S. exits tomato deal, imposing 20.91% tariff on Mexican imports
- Long-Term Impact: Potential reshoring of vital industries, but supply chain overhaul will take years
Trump Investigates Chip, Drug Imports for Tariffs
Deep Look
BANGKOK — The Trump administration escalated its aggressive trade agenda Monday, moving forward with new investigations aimed at imposing tariffs on key imports including computer chips, chip-making equipment, and pharmaceutical drugs.
While President Donald Trump recently paused most major tariff hikes for 90 days, except those targeting China, the new investigations indicate a continued push to bring critical manufacturing back to the U.S. under the guise of national security.
The Department of Commerce quietly filed notices late Monday in the Federal Register, soliciting public comment over the next three weeks. No formal announcement was made, but the message was clear: tariffs on semiconductors and pharmaceuticals are still very much on the table.
Targeting Semiconductors and AI Components
Using Section 232 of the Trade Expansion Act of 1962, which allows tariffs on imports affecting national security, the Commerce Department is assessing:
- U.S. dependency on foreign computer chips
- The ability of domestic production to meet national demand
- Risks posed by foreign government subsidies and concentrated chip production abroad
Products under review include chips used in:
- Smartphones and laptops
- Vehicles and smart appliances
- Military and critical infrastructure systems
“We need to make semiconductors in America,” said Commerce Secretary Howard Lutnick. “This is about national security, not negotiation.”
Pharmaceuticals Under Scrutiny
The second probe targets pharmaceutical imports and active ingredients—with special attention to reliance on countries like:
- India
- China
- European Union nations
Trump confirmed on Monday that tariffs on drug imports were imminent.
“We want to make our own drugs,” he said. “And we’re going to do that — very soon.”
Roughly 70% of pharmaceutical components used in U.S.-produced drugs are imported. Yet the U.S. remains the largest consumer, accounting for 45% of global pharmaceutical usage.
Electronics and Existing Tariffs
Despite last week’s announcement that electronics would be exempt from the new 145% “reciprocal” tariffs on Chinese imports, Trump’s team clarified those items would still face earlier tariffs and potentially new sector-specific levies under national security justifications.
“They’re just moving to a different tariff bucket,” Trump said Sunday.
This affects approximately $174 billion worth of electronics imported from China annually.
Shifting Supply Chains — Slowly
While companies like Taiwan Semiconductor Manufacturing Company (TSMC) and others are building U.S. facilities thanks to incentives passed under President Joe Biden, reshoring supply chains for semiconductors and pharmaceuticals will require years of investment and restructuring.
“This is a long game,” said a White House official. “But we’re taking the necessary steps to secure our economic future.”
Tomato Deal with Mexico Canceled
In a separate but related move, the Commerce Department announced its withdrawal from a 2019 tomato trade agreement with Mexico, citing failures to protect U.S. farmers from dumped prices. Starting in 90 days:
- Most Mexican tomatoes will face a 20.91% tariff
- The administration said the previous deal did not adequately address “unfair pricing”
You must Register or Login to post a comment.