US set to unveil findings on chip imports investigation within two weeks, according to Lutnick

The Trump administration has launched an investigation under Section 232 of the Trade Expansion Act of 1962 to examine the extensive reliance on foreign imports of semiconductors and pharmaceuticals, potentially posing a national security threat.

This probe, which could lay the groundwork for new tariffs in both sectors, comes as the US relies heavily on chips imported from Taiwan. The investigation was announced following a meeting between President Trump and European Commission President Ursula von der Leyen, during which they announced a new framework trade agreement.

Under this agreement, EU imports entering the US will be subject to across-the-board 15% tariffs, while autos will face a higher 25% tariff under a separate sectoral tariff action. However, President Trump stated that von der Leyen had avoided the pending chips tariffs "in a much better way."

Trump has been upending global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners on Friday.

The new trade agreement with the European Union is not the only initiative aimed at boosting US manufacturing. Trump stated that many companies will be investing in semiconductor manufacturing in the US to avoid new tariffs. Taiwanese companies such as TSMC and UMC have already announced plans to build semiconductor manufacturing facilities in the United States to avoid being affected by new tariffs.

Some companies from Taiwan and other places are expected to invest in semiconductor manufacturing in the US, following a similar trend initiated during Trump's first term. Earlier probes completed during his first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel, aluminum, and the auto industry.

President Trump suggested higher tariffs were on the horizon for imports of semiconductors, with the administration set to announce the results of the national security probe into imports of semiconductors in two weeks. Commerce Secretary Howard Lutnick stated that the investigation is one of the "key reasons" the European Union sought to negotiate a broader trade agreement.

Meanwhile, former President Joe Biden sought to reverse this dependence during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the US. As the investigation unfolds, it remains to be seen how it will impact the semiconductor industry and US-Taiwan relations.

US set to unveil findings on chip imports investigation within two weeks, according to Lutnick