Trump launches tariff probes into chip and drug imports
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The news: The Trump administration this month initiated Section 232 investigations into imports of semiconductors and pharmaceuticals, setting the stage for new tariffs, according to media reports citing official documents.
The probes, announced in the Federal Register on Monday (Tuesday AEST) and opened on 1 April, will examine “imports of semiconductors and semiconductor manufacturing equipment” and “pharmaceuticals and pharmaceutical ingredients, including finished drug products,” according to Commerce Department notices.
Trump said on Sunday he would soon be announcing a tariff rate on imported semiconductors.
The numbers: The US began collecting 10% tariffs on imports on 5 April, though semiconductors and pharmaceuticals were exempt.
Public comment on the new probes is open for 21 days, and the law requires the investigations to be completed within 270 days.
The context: The semiconductor probe will include legacy and leading-edge chips, manufacturing equipment and electronic products that contain the components, according to the filings cited by The Wall Street Journal.
Drugmakers have warned that tariffs could increase the chance of shortages, reduce access for patients and lead to cuts in research. In response, companies including Merck, Eli Lilly and Novartis have raced to announce major investments in the US ahead of potential tariffs.
The sources: Reuters , The Wall Street Journal
