U.S. Widens Tariffs
- The U.S. has broadened its trade actions, imposing a 25% tariff on certain semiconductors re-exported to China and probing tariffs on pharmaceuticals. (commonslibrary.parliament.uk) - The headline figure is a 25% levy aimed at stopping U.S.-origin chip technology from reaching China through third countries. (commonslibrary.parliament.uk) - Experts warn that targeting trans-shipped goods could disrupt Southeast Asian supply chains and complicate future US-China negotiations. (orfonline.org)
The United States has widened its tariff push, pairing a 25% duty on some advanced chips with new duties on patented pharmaceuticals. (whitehouse.gov) President Donald Trump signed the semiconductor proclamation on January 14, 2026, after a Section 232 national security investigation by the Commerce Department. The White House said the 25% tariff covers certain advanced computing chips, including products such as Nvidia H200 and AMD MI325X. (whitehouse.gov 1) (whitehouse.gov 2) Trade lawyers at White & Case said the chip tariff took effect at 12:01 a.m. Eastern on January 15, 2026, and applies to a narrow set of imports that are not intended for use in the United States. The same proclamation told the Commerce Department and the Office of the United States Trade Representative to keep negotiating with foreign governments and left open the option of broader tariffs later. (whitecase.com) The pharmaceutical action moved further. On April 2, 2026, Trump issued a second Section 232 proclamation after Commerce found that imported patented drugs and active pharmaceutical ingredients threatened national security. (whitehouse.gov) The White House said that order imposes a 100% tariff on patented pharmaceutical products and ingredients, with the duties starting in 120 days for some large companies and 180 days for smaller ones. It also said generic drugs and biosimilars are excluded for now, while products from the European Union, Japan, South Korea, Switzerland and Liechtenstein face a 15% tariff instead. (whitehouse.gov) The administration is using Section 232 of the Trade Expansion Act of 1962, the same national security law it has used for steel, aluminum, chips and now drugs. In both proclamations, Trump said the United States lacks enough domestic capacity and depends too heavily on foreign suppliers for critical products. (whitehouse.gov 1) (whitehouse.gov 2) That shift reaches beyond China. A UK Parliament research briefing published April 14, 2026, said the United States had imposed a 25% tariff on specific semiconductors re-exported to China from January 14 and was also investigating tariffs on pharmaceuticals, while carving out possible exemptions for partners in trade talks. (commonslibrary.parliament.uk) The supply-chain pressure point is Southeast Asia, where chip assembly, packaging and rerouting already run through countries such as Vietnam, Malaysia and Thailand. The Observer Research Foundation wrote on April 23, 2026, that U.S. penalties on transshipped trade could disrupt regional supply chains and complicate any future U.S.-China bargaining. (orfonline.org) The White House is also offering off-ramps. Its April 2 fact sheet said drugmakers that sign onshoring deals with Commerce and most-favored-nation pricing deals with the Department of Health and Human Services can qualify for a 0% tariff through January 20, 2029. (whitehouse.gov) For now, the tariff story is no longer just about goods made in China. It is about where chips and medicines are made, where they are routed, and which trading partners can still negotiate an exception. (whitehouse.gov) (commonslibrary.parliament.uk)
