Trump: Tariffs on Semiconductors and Pharmaceuticals May Be Imposed!

On April 14, 2025, the U.S. Department of Commerce launched a national security investigation under Section 232 of the Trade Expansion Act on the following products:

🔹 Semiconductors and their manufacturing equipment

🔹 Pharmaceuticals and raw materials, including finished drugs

This move is seen as a precursor to potential tariffs on these products. The public comment period is now open and is expected to close on May 7.

Potential Tariff Impact

It is expected that the U.S. could impose 10% to 25% tariffs on semiconductors and pharmaceuticals:

🔸 Pharmaceuticals: The U.S. imports over $211 billion worth of pharmaceuticals annually. If tariffs are fully implemented, the import costs could increase by around $46 billion.

🔸 Semiconductors: The U.S. is heavily reliant on Taiwan and South Korea for advanced logic chips, with Taiwan accounting for 92% of global production.

Policy Motivation & Official Position

U.S. Secretary of Commerce, Howard Lutnick, stated that the purpose of this investigation is to encourage the return of critical industries to the U.S. and reduce reliance on foreign manufacturing. He emphasized that tariffs on pharmaceuticals and semiconductors are non-negotiable.

International Reactions

🔸 China: Despite the tariff pressure, China stated that "the sky won't fall" and emphasized its diversified trade strategy and strong domestic market as buffers.

🔸 UK and Ireland: Exporters are concerned about the new tariffs, particularly the potential impact on the export of electronics and pharmaceuticals.

How will this policy affect global supply chains? The upcoming comment period will determine whether this shift takes place. Stay tuned! 🌐💼

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