The Trump administration has initiated formal investigations into imports of pharmaceuticals and semiconductors, laying the groundwork for new tariffs under Section 232 of the Trade Expansion Act of 1962.
Federal Register filings published Monday announced the start of 21-day public comment periods for both sectors, as the administration presses ahead with efforts to shift critical supply chains back to the U.S. on national security grounds.
The probes—officially launched on April 1—reflect President Trump’s broader trade policy agenda, which prioritizes domestic production of strategically important goods. The move marks a continuation of the administration’s aggressive use of Section 232, which has already served as the basis for sweeping tariffs on steel, aluminum, and automotive imports during Trump’s earlier term. New investigations into copper and lumber are also underway.
The United States began collecting baseline import duties of 10% on April 5, while reciprocal tariffs of up to 125% on certain electronics were announced last week. Smartphones, computers, and semiconductors—largely imported from China—were excluded from those duties.
However, Trump has said that semiconductors and pharmaceutical products will face separate tariffs, with rates expected to be announced in mid-May.
Pharmaceuticals and active pharmaceutical ingredients will be included in the scope of the investigation, raising concerns among drugmakers about potential disruptions. Industry leaders have warned that tariffs could increase the risk of shortages, raise costs for patients, and complicate supply chains.
Companies are pushing for a phased implementation to allow time to adjust manufacturing operations, which are currently spread across the U.S., Europe, and Asia.
Trump has argued that the country’s dependence on foreign drug and chip production poses a national security risk. His administration’s latest actions follow efforts during the Biden presidency to re-shore semiconductor manufacturing through initiatives like the CHIPS Act.
The U.S. still relies heavily on Taiwan for chip imports, a key vulnerability Trump says must be addressed.
Trump has suggested there may be flexibility in the application of the tariffs, depending on the circumstances of individual companies. Meanwhile, lobbying from industry groups is expected to intensify during the public comment period.
The announcement comes as markets react to the growing scope of the administration’s trade agenda. U.S. equity indexes have fallen sharply since Trump’s return to the White House, with some economists warning of increased inflation and rising unemployment as a result of tariff escalation.
The administration’s shift from the International Emergency Economic Powers Act (IEEPA) to Section 232 is seen as an attempt to establish a more legally durable basis for long-term trade restrictions. Critics, however, question the rationale for labeling downstream consumer products like electronics as essential to national security.
Calls for a more coordinated trade strategy continue to mount, with business leaders urging the administration to work with allies to address trade imbalances with China instead of resorting to broad unilateral measures.
