Washington: The United States has initiated probes into the imports of semiconductors, chipmaking equipment, and pharmaceuticals, as indicated by Commerce Department notices. This move comes as President Donald Trump considers imposing new tariffs on these products.
According to Yonhap News Agency, Commerce Secretary Howard Lutnick started the investigations on April 1 under Section 232 of the Trade Expansion Act of 1962. This section grants the president authority to adjust imports if they are deemed a threat to national security. Trump's administration has been utilizing tariffs to enhance domestic manufacturing and address the trade deficit.
The Commerce Department's Bureau of Industry and Security has requested public comments concerning the investigation, which focuses on imports of semiconductors, semiconductor manufacturing equipment (SME), and related products. Items under scrutiny include semiconductor substrates, bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components. The investigation also covers downstream products containing semiconductors, essential to the electronics supply chain.
A separate investigation targets pharmaceutical imports, encompassing pharmaceutical ingredients and their derivatives. This includes both finished generic and non-generic drug products, medical countermeasures, critical inputs like active pharmaceutical ingredients, key starting materials, and their derivative products.
In the past, President Trump has used Section 232 to implement 25 percent tariffs on steel, aluminum, cars, and auto parts.
The Commerce Department intends to gather public feedback for 21 days following the notice postings. By law, the commerce secretary has 270 days to deliver findings and recommendations to the president. Subsequently, the president has 90 days to review the report and decide on the appropriate action.