The US is investigating imported pharmaceuticals and semiconductors to assess the possibility of imposing tariffs if it becomes too dependent on foreign supplies.
On April 14, the Federal Register (where legal documents and government announcements are posted) announced that the US Department of Commerce is conducting an investigation into imported pharmaceuticals and semiconductors. Officials have been seeking public comments on the matter since April 16, which will last for 21 days.
The investigation is based on Section 232 of the Trade Expansion Act of 1962. This is also the law that US President Donald Trump cited to investigate and impose 25% tariffs on aluminum, steel, and cars. The Trump administration has initiated an investigation into imported copper and wood.
The announcement said the investigation began on April 1. According to regulations, this process must be completed within 270 days.
The Commerce Department will assess whether domestic production capacity can help reduce import dependence and whether additional trade measures, such as import tariffs, are necessary to protect national security.
The information further reinforces President Trump's statement two days ago that important consumer electronics such as smartphones, laptops, hard drives, memory chips, etc., as well as machinery for manufacturing semiconductors, semiconductors, and solar panels, are not exempt from tariffs.
He said these products are only exempt from reciprocal tariffs, and "will move to a different tariff level" because the US "is putting the semiconductor and electronics supply chain under the National Security Import Tariff Investigation".
Import tariffs are now the focus of Mr. Trump's economic and national security policies. In just a few months, the US has raised the average tariff rate on this country from 2.5% to 25%. Goods from China are even subject to a 145% tariff. To date, pharmaceuticals and semiconductor products are exempt from reciprocal tariffs.
The US currently relies heavily on imported chips from Taiwan. Pharmaceutical companies also assert that import tariffs will increase the risk of drug shortages and reduce patients' access to medicines. However, Mr. Trump believes that the US needs to increase domestic production to reduce dependence on foreign pharmaceutical supplies.
Courtney Breen, an analyst at Bernstein, predicts that Mr. Trump could announce new tariffs in mid-May, with a rate of 10-25%. Businesses in these industries are lobbying to slow down the process and seek exemptions.