US begins probes into pharmaceutical, chip imports, setting stage for tariffs

The Trump administration has launched investigations into imports of pharmaceuticals and semiconductors, aiming to impose tariffs on these sectors under national security grounds, according to notices published in the Federal Register on Monday, as reported by Reuters.

The filings, to be published on Wednesday, provide a 21-day window for public comment and indicate that the tariffs would be pursued under Section 232 of the Trade Expansion Act of 1962. This section mandates that such investigations be completed within 270 days from the announcement.

This move follows previous Section 232 investigations into copper and lumber imports, which laid the foundation for tariffs imposed on steel, aluminum, and the auto industry during Trump’s first term. A 10% tariff on imports was initiated on April 5, with pharmaceuticals and semiconductors exempt from those duties, but Trump has confirmed they will face separate tariffs.


Trump also stated on Sunday that he would announce a tariff rate on imported semiconductors within the next week, offering flexibility to some companies in the sector.

The U.S. is heavily reliant on imported chips from Taiwan, a dependency that President Joe Biden sought to address by allocating billions in Chips Act funding to encourage domestic production.

The investigation will cover both pharmaceuticals and pharmaceutical ingredients, along with related products. Drugmakers have expressed concerns that tariffs could lead to shortages and reduced patient access. However, Trump has argued that increasing U.S. drug manufacturing would reduce dependence on foreign supply.

Pharmaceutical companies have lobbied for a phased approach to tariffs, allowing time to adjust production and minimize the impact. Moving production to the U.S. would require significant resources and time, especially for large drugmakers with global manufacturing bases in the U.S., Europe, and Asia.

With inputs from Reuters