Trump admin opens door to impose tariffs on pharmaceuticals, semiconductors

The Trump administration has acted to impose new tariffs on semiconductors and pharmaceutical products, beginning a process that could add to levies that President Donald Trump is imposing on goods flowing into the US from nations worldwide.

"President Trump has long been clear about the importance of reshoring manufacturing that is critical to our country's national and economic security. Following the President's directive, the Department of Commerce is moving forward with the public comment period of Section 232 investigations on pharmaceutical and semiconductor-related products," White House spokesperson Kush Desai said in a statement on Monday.

"The entire administration is committed to working on Trump Time to secure our economic future and restore American Greatness," he added.

The processes were kickstarted with the posting of federal notices alerting the public that the administration has begun investigations into the national security implications of importing pharmaceuticals and pharmaceutical ingredients, and semiconductors and semiconductor manufacturing equipment. The investigations were opened April 1, according to the notices.

As mentioned by Desai, the tariffs would be imposed under Section 232 of the Trade Expansion Act of 1962, which authorizes the president to impose duties on goods "if they are being imported in quantities or circumstances that threaten to impair national security."

Temporary exemption

Late Friday, US officials announced exemptions from the latest duties against China and others for a range of high-end tech goods such as smartphones, semiconductors and computers.

But Trump suggested on Sunday that the exemption would be only temporary and that he still planned to put barriers up on imported semiconductors and much else.

On Monday, in remarks at the White House, Trump once again pivoted to suggesting a possible compromise, saying he was "very flexible" and "looking at something to help some of the car companies" hit by his 25 percent tariff on all auto imports.

"I don't want to hurt anybody," he said.

Washington's temporary exemptions will benefit US tech companies such as Nvidia and Apple, which makes iPhones and other premium products in China.

But any relief could be temporary.

Trump used the authorities in March to expand tariffs on steel and aluminium, and opened investigations into copper and timber that month.

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Source: TRT