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Trump Initiates Chips And Drug Probes Ahead Of More Tariffs
- President Trump's administration has initiated trade probes into semiconductor and pharmaceutical imports, potentially leading to tariffs as part of the ongoing US trade war.
- The Commerce Department investigations on semiconductors and pharmaceuticals are conducted under Section 232 of the Trade Expansion Act and could last for months.
- Trump aims to boost domestic manufacturing by imposing tariffs on foreign-made drugs and chips, but this could disrupt supply chains and increase costs for consumers.
- The semiconductor industry, with global sales over $600 billion, is at risk of higher costs and disruptions from potential tariffs.
- Foreign semiconductor manufacturers like Taiwan Semiconductor and SK Hynix may face price increases or reduced margins if tariffs are imposed.
- The drug industry, including major companies like Merck and Eli Lilly, could also be impacted by tariffs, leading to higher costs and potential supply chain disruptions.
- Despite the US pharmaceutical industry's efforts to boost domestic manufacturing, tariffs could still result in cost increases and impact research and development.
- The move towards tariffs on both semiconductors and pharmaceuticals signals Trump's focus on revitalizing American manufacturing and addressing national security concerns.
- The administration's consideration of temporary exemptions and negotiations with industry leaders indicate a willingness to listen and potentially adjust tariff measures.
- The broader implications of tariffs on semiconductor and drug sectors could impact global supply chains, research efforts, and manufacturing costs, with long-term consequences.
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