Trump plans to introduce new tariffs on computer chips and medicines

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Trump plans to introduce new tariffs on computer chips and medicines
Trump plans to introduce new tariffs on computer chips and medicines

Citing the national security law, the administration has initiated a review of the impact of semiconductor and pharmaceutical imports.

The administration of U.S. President Donald Trump has launched an investigation into the import of microchips and pharmaceutical products. The American leader suggested that the results could lead to new tariffs.

According to The New York Times, the investigation will also cover equipment used for semiconductor production, goods containing microchips, and pharmaceutical ingredients.

The new tariffs on semiconductors and pharmaceutical products will be introduced under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose trade restrictions to protect national security.

Semiconductors are used in electronics, cars, toys, and other goods. The U.S. heavily depends on chips imported from Taiwan and other Asian countries — a dependence that both Democrats and Republicans consider a serious national security risk.

As for pharmaceuticals, Trump has argued that too many essential medicines are being imported. Some drugs are at least partially manufactured in the U.S., though China, Ireland, and India are significant sources of certain pharmaceutical products.

Trump claims that tariffs on chips will force companies to relocate their factories to the U.S. Some tech firms have responded to the president’s call by pledging to build more in the States.

However, some critics question how effective the tariffs will be in actually strengthening American industry, especially since the Trump administration is also threatening to cut grants awarded to chip factories under President Biden’s administration. Meanwhile, foreign governments — including China, Japan, South Korea, and Taiwan — are actively subsidizing semiconductor production with grants and tax incentives.

За даними асоціації глобальних постачальників напівпровідників SEMI, до 2028 року у світі планується відкрити 105 нових фабрик із виробництва мікросхем. 15 із них планують побудувати у США, а більшість - в Азії.

Editorial Team

David Wilson

Politics Editor

United States, Trump tariffs, Donald Trump

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