Washington: The United States has initiated investigations into the importation of semiconductors and pharmaceuticals to evaluate their effects on national security. Commerce Department notices revealed these developments on Monday as President Donald Trump considers implementing new tariffs on these goods.
According to Yonhap News Agency, Commerce Secretary Howard Lutnick triggered the investigations on April 1 under Section 232 of the Trade Expansion Act of 1962. This move is being closely observed by South Korea and other U.S. trading partners, who are concerned about the potential impacts of Trump's tariff policies on their economies.
Section 232 grants the president the authority to regulate imports if they are deemed a threat to national security. Trump has utilized tariffs as a strategy to boost federal revenue, reduce the U.S. trade deficit, attract foreign investments, and reinforce domestic manufacturing.
The Commerce Department's Bureau of Industry and Security has issued a notice seeking public comments on the investigation, which will focus on imports of semiconductors, semiconductor manufacturing equipment (SME), and related products. The investigation will cover semiconductor substrates, bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components. It will also examine downstream products containing semiconductors, which are integral to the electronics supply chain.
In a separate notice, the bureau announced an investigation into imports of pharmaceuticals, pharmaceutical ingredients, and derivative products. This includes finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients, key starting materials, and related products.
Trump has consistently expressed his intent to impose tariffs on chips and pharmaceuticals, emphasizing the necessity of revitalizing American manufacturing amidst growing competition with China.
In prior instances, Trump has used Section 232 to impose tariffs on steel, aluminum, cars, and auto parts.
The Commerce Department intends to gather public feedback for 21 days following the official publication of the notices. By law, the commerce secretary has 270 days to submit the department's findings and recommendations to the president. Following receipt of the report, the president has 90 days to decide whether to align with the department's conclusions and take action.