Apr 15, 2025
Trump Targets Chips & Pharma with New Tariff Probes
On April 1, 2025, the Trump administration initiated Section 232 investigations into semiconductor and pharmaceutical imports, citing national security concerns
Under the Trade Expansion Act of 1962, Section 232 allows the U.S. to impose tariffs if imports are deemed a threat to national security
The U.S. heavily relies on semiconductor imports from East Asian countries, including Taiwan and South Korea. The investigation aims to reduce this dependency
Over 70% of active pharmaceutical ingredients used in the U.S. are imported, primarily from China, the EU, and India, prompting concerns over supply chain vulnerabilities
Analysts predict tariffs ranging from 10% to 25% could be imposed, potentially increasing import costs by approximately $46 billion if fully enacted
While smartphones and computers are currently exempt from increased import duties, President Trump indicated that tariffs on semiconductors will be announced soon
Countries like the UK and Ireland express concerns over the potential impact on their exports, with significant portions of their semiconductor and pharmaceutical products destined for the U.S. market
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