Trump has eye on chip, drug tariffs

The Trump administration took steps on Monday that appear likely to result in new tariffs on semiconductors and pharmaceutical products, adding to the levies President Trump has put on imports globally.

- ANA SWANSON TONY ROMM

Federal notices put online Monday afternoon said the administration had initiated national security investigations into imports of chips and pharmaceuticals. Trump has suggested that those investigations could result in tariffs.

The investigations will also cover the machinery used to make semiconductors, products that contain chips and pharmaceutical ingredients.

In a statement confirming the move, Kush Desai, a White House spokesman, said the president “has long been clear about the importance of reshoring manufacturing that is critical to our country’s national and economic security.”

The new semiconductor and pharmaceutical tariffs would be issued under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs to protect US national security.

Earlier in the day, Trump hinted that he would soon impose new tariffs on semiconductors and pharmaceuticals, as he looked to shore up more domestic production.

“The higher the tariff, the faster they come in,’ Trump told reporters at a White House appearance, citing import taxes he has imposed on steel, aluminium and cars.