Trump administration initiates probes on semiconductor and pharmaceutical imports

Published 14/04/2025, 21:48
© Reuters

Investing.com -- The administration of President Donald Trump is moving forward with plans to potentially levy tariffs on semiconductor and pharmaceutical imports. These plans were revealed on Monday through a pair of notices posted to the Federal Register, indicating the initiation of investigations by the Commerce Department.

 

The investigations will focus on the impact of semiconductor and pharmaceutical imports on US national security. The products under scrutiny include semiconductors, semiconductor manufacturing equipment, pharmaceuticals, pharmaceutical ingredients, and finished drug products. These probes are seen as preliminary steps towards the imposition of tariffs, potentially broadening the scope of the ongoing US trade war.

 

The US President has previously expressed concerns about foreign production of drugs and chips, viewing it as a threat to national security. His aim is to encourage the revival of American manufacturing of these products. However, the proposed tariffs could disrupt supply chains and increase costs for American consumers.

 

The semiconductor industry could face significant disruption from these tariffs. The potential new tariffs could add further strain on the industry’s supply chains. The proposed tariffs could also impact the world’s largest drugmakers, including Merck & Co (NYSE:MRK). and Eli Lilly & Co (NYSE:LLY)., which operate numerous manufacturing sites worldwide. The pharmaceutical industry has historically been shielded from trade wars due to international agreements that protect medicines from tariffs on humanitarian grounds. The potential imposition of tariffs by the Trump administration marks a departure from this tradition.

 

The Commerce Department has initiated these investigations under section 232 of the Trade Expansion Act of 1962. The Department’s Bureau of Industry and Security has invited interested parties to submit written comments, data, analyses, or other information relevant to the investigation.

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