The Trump administration has launched new national security investigations into imports of semiconductors and pharmaceuticals, which could lead to new tariffs. The probes also include chip-making equipment and drug ingredients, The New York Times reported.
White House Deputy Press Secretary Kush Desai confirmed the move, saying the president is looking to bring critical manufacturing back to the US.
Trump has said the tariffs should encourage manufacturing to move to the U.S., citing tariffs on steel, aluminum and cars as examples. He has also said he is considering temporary exemptions for some companies, including automakers that rely on imported parts.
The US relies heavily on imports of chips from Taiwan and other Asian countries, a concern for both parties. On pharmaceuticals, Trump has criticized the US's reliance on imported drugs, particularly from China, India and Ireland.
Last week, Trump announced "reciprocal" tariffs globally, including steep tariffs on electronics-producing countries like Vietnam. After market volatility, those tariffs were temporarily suspended for 90 days.
Duties on Chinese goods were also significantly increased — to a minimum of 145%, although smartphones, laptops, televisions, and other electronics were later exempted from them.
A number of technology companies have already pledged to increase investment in manufacturing in the US. For example, TSMC will spend $100 billion, Apple — $500 billion, and NVIDIA announced the production of AI supercomputers in the US worth up to $500 billion.
However, experts doubt that the tariffs alone will significantly stimulate the industry, especially against the backdrop of possible cuts to subsidies under the CHIPS program approved by the Biden administration. 105 new chip factories are planned to open worldwide by 2028, most of them in Asia.
Analysts point out that the US has only a quarter of the global demand for chip-based products, so cooperation with allies will be key.