Overview

• The US Commerce Department has initiated a Section 232 investigation into semiconductor imports, focusing on national security risks and the feasibility of expanding domestic chip production.
• The investigation is expected to lead to tariffs on imported chips and related electronics, with public comments being sought over the next 21 days.
• Temporary exemptions on certain electronics, including smartphones and computer monitors, remain in place but are expected to be integrated into future semiconductor-specific tariffs.
• Economists warn that the tariff strategy could increase consumer prices, fuel inflation, and create economic uncertainty due to higher import costs and unpredictable policy shifts.
• The administration's broader trade policy also includes Section 232 probes into copper, lumber, pharmaceuticals, and critical minerals, reflecting a comprehensive realignment of US trade priorities.