The Trump administration has launched an investigation into drug and semiconductor imports as part of its bid to impose tariffs on both sectors for national security reasons, a notice posted Monday showed.
The submission, scheduled to be published on Wednesday, marks the 21-day deadline from that date for submission of public comments on the issue, and pursuing taxation under the authorities granted by the Trade Expansion Act of 1962. Such inquiries must be completed within 270 days of publication.
Donald Trump’s management has launched 232 investigations into copper and timber imports, and the investigation completed during the first term of the US president has formed the basis for tariffs since returning to the White House in the steel, aluminum and automotive industries in January.
The US began collecting 10% tariffs on imports on April 5th. Drugs and semiconductors are exempt from these obligations, but Trump says he will face separate tariffs.
Trump said on Sunday that he would release tariff rates on imported semiconductors next week, adding that some companies in the sector would have flexibility.
The US relies heavily on chips imported from Taiwan. This was attempted to reverse by then-President Joe Biden by awarding billions of Chips Act awards to invite chip makers to expand production in the US.
The investigation released Monday includes both pharmaceutical and pharmaceutical ingredients, as well as other derivative products, the notification says.
Drugmakers argue that tariffs can increase the likelihood of shortages and reduce patient access. Still, Trump has pushed fees and argued that the US needs more drug production and that there is no need to resort to other countries to supply drugs.
Industry companies are pushing Trump in stages in tariffs on imported medicines in hopes of reducing stab wounds from charging and allowing time to shift production.
Large drugmakers have a global manufacturing footprint primarily in the US, Europe and Asia, and moving more production to the US requires key commitments of resources and can take years.
