The probe will assess current and projected demand for semiconductors and pharmaceuticals in the country, among other factors.
The Trump administration has launched an investigation into the effects on national security of importing semiconductors and pharmaceutical products, according to Federal Register filings on Monday.
The Commerce Department, in a pair of Federal Register notices set to be published on April 16, said that the probes were initiated under Section 232 of the Trade Expansion Act—which allows the president to impose tariffs on imports considered a threat to national security.
The department stated that it began investigating the national security implications of importing semiconductors and semiconductor manufacturing equipment (SME) on April 1.
This includes “semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components,” as well as derivative products of those items, according to one of the filings.
The probe will assess current and projected demand for semiconductors and SME in the United States; the extent to which domestic production can or is expected to meet that demand; the role of foreign fabrication and assembly; the concentration of U.S. semiconductor imports; and the potential for export restrictions by other nations; among other issues.
In another notice, the department said it was investigating imports of pharmaceuticals and their ingredients. This includes “finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients and key starting materials, and derivative products of those items.”
The investigation aims to examine issues similar to those concerning semiconductor imports, such as the current and projected demand for pharmaceuticals and their ingredients in the country; the role of foreign supply chains in meeting that demand; and the impacts of foreign government subsidies and predatory practices on U.S. pharmaceutical industry competitiveness.
The department also seeks to assess the economic impact of “artificially suppressed prices” of pharmaceuticals and their ingredients resulting from “unfair trade practices and state-sponsored overproduction.”
Both filings are open to public comment for 21 days, although Section 232 investigations may take up to 270 days to complete.
