Trump's Tariff Playbook: Targeting Pharmaceuticals and Semiconductors

The Trump administration is investigating imports of pharmaceuticals and semiconductors to impose tariffs based on national security concerns. These initiatives follow previous measures on copper, lumber, steel, aluminum, and the auto industry. Critics worry tariffs may lead to shortages and limited access for patients.

The Trump administration has initiated investigations into imports of pharmaceuticals and semiconductors, aiming to impose tariffs under national security pretenses, as evidenced by recent notices in the Federal Register.

Public commentary on this issue is welcomed within a 21-day period following the publication of these notices, suggesting these tariffs might draw on Section 232 of the Trade Expansion Act of 1962. This legal framework mandates that such probes should conclude within 270 days from their announcement. Trump's previous tariff investigations targeted sectors such as copper, lumber, steel, aluminum, and the auto industry.

Currently, imports are subjected to a 10% tariff, but pharmaceuticals and semiconductors had been exceptions until now. Trump plans to announce a specific tariff rate for semiconductors soon, hinting at flexibility for some companies. Conversely, drugmakers warn these tariffs could precipitate shortages and hinder patient access.

(With inputs from agencies.)