Trump’s administration took steps on Monday, which seems to result in new invoices on semiconductors and medicines, adding to the contributions that President Trump has set imports worldwide.
Federal announcements on the Internet in the afternoon said that the administration had begun national security investigations into imports of chips and pharmaceuticals. Mr Trump suggested that these investigations could lead to invoices.
Research will also cover the machines used for the production of semiconductors, products containing chips and medicinal ingredients.
In a statement confirming the move, Kush Desai, a White House spokesman, said the president “has long been clear about the importance of revising the construction that is critical to our country’s national and economic security”.
New semiconductors and pharmaceutical invoices will be issued in accordance with Article 232 of the 1962 trade law, which allows the president to impose invoices to protect US national security.
Earlier on the day, Mr Trump implies that he will soon impose new invoices on semiconductors and medicinal products as he looked at more domestic production.
“The higher the invoice, the faster they come,” Mr Trump told reporters in a White House, citing the import taxes he imposed on steel, aluminum and cars.
Semiconductors are used to supply electronics, cars, toys and other goods. The United States is largely dependent on the chips imported by Taiwan and elsewhere in Asia, a dependency that democrats and Republicans described as a significant risk to national security.
In terms of medicinal products, Mr Trump claimed that too many vital drugs were introduced. “We no longer make our own medicines,” he said.
Some medicines are at least partially produced in the United States, although China, Ireland and India are important sources of certain types of medicinal products.
Mr Trump also marked on Monday that he could offer some companies relief from his invoices, as he did for electronics imports in recent days – a break from his previous insistence that he would not compensate entire industries.
The president said he was “looking at something to help some of the car companies, where they change to places in Canada, Mexico and other places.” Added, “and it takes some time because they have to do them here.” The shares of General Motors, Ford Motor and Stellantis jumped after his comments.
“I am a very flexible person, I do not change my mind, but I am flexible,” Mr Trump said on Monday when asked about possible exceptions. He added that he had spoken with Apple CEO, Tim Cook, and “helped” it recently.
The president announced significant changes last week on his commercial agenda, which has surpassed markets and has spread businesses trying to persuade to invest in the United States.
Mr Trump has announced a program of global, “reciprocal” invoices on April 2, including high contributions to countries that make many electronics, such as Vietnam. However, after turning upset of bonds, he stopped these world invoices for 90 days so that his government could carry out trade negotiations with other countries.
These import taxes came in addition to other invoices that Mr Trump has set in various areas and countries, including a 10 % invoice in all US imports. A 25 percent invoice for steel, aluminum and cars. and a 25 % invoice in many goods from Canada and Mexico. Overall, the moves have increased US invoices to levels that have not been observed in more than a century.
Within a skewer with China, Mr Trump increased invoices to Chinese imports last week to a minimum of 145 %, before getting rid of smartphones, laptops, televisions and other electronics on Friday. These goods are about a quarter of US imports from China.
The administration claimed that the move was merely a “clarification”, saying that these electronics would be included in the scope of the National Security Research for brands.
However, industry executives and analysts have questioned whether the administration’s actual motivation could be to avoid a reaction linked to a sharp increase in prices for many electronic consumer – or help technology companies, such as Apple, that have reached the White House in recent days to support them.
Mr Trump has already used the legal authority in accordance with Article 232 to issue invoices for imported steel, aluminum and cars. The administration also uses power to conduct investigations of timber and copper imports.
Monday’s announcements said the administration had begun its investigations into the imports of pharmaceuticals and semiconductors on April 1st. Neither the White House nor the president said earlier that the process had officially begun.
Kevin Hassett, director of the White House National Economic Council, told reporters on Monday that the National Security Chip invoices were needed.
“The example I like to use is, if you have a cannon, but you take the cannons from an opponent, then if there was some kind of action, then the firearms can be exhausted,” he said. “And so you can put an invoice on the channels.”
Mr Trump argued that brands will force companies to transfer their plants to the United States.
Some technology companies have responded to the president’s demands to build more in the United States. Taiwan’s Semiconductor production company, the world’s largest chip maker, announced to the White House in March that it will spend $ 100 billion in the United States over the next four years to expand its productive capacity.
Apple has announced that it will spend $ 500 billion in the United States over the next four years to expand facilities across the country.
On Monday, Nvidia, Chipmaker, announced that it would produce supercomputers for artificial intelligence that has become entirely in the United States. In the next four years, the company said, it will produce up to $ 500 billion in the United States in collaboration with TSMC and other companies.
“AI infrastructure engines in the world are being built for the first time in the United States,” Jensen Huang, Nvidia’s chief executive, said in a statement.
The White House threw the news in a statement that believed the president.
“It’s the result of Trump in action,” the statement said, adding: “Onshoring of these industries is good for the American worker, good for the American economy and good for American national security – and the best has not yet come.”
However, some critics have questioned how many invoices will really help to boost the US industry, as Trump’s administration also threatens to reinstate the grants given to Biden’s chip factories. And foreign governments such as China, Japan, South Korea and Taiwan subsidize all semiconductors that are largely manufactured with tools such as grants and tax relief.
Worldwide, 105 new chip factories, or Fab, are going to come online by 2028, according to data compiled by SEMI, a union of world semiconductor suppliers. Fifteen of them are designed for the United States, while bulk is in Asia.
Mr Trump criticized the Law on Marks, a $ 50 billion program founded under the Biden administration and aimed to provide motivation for the construction of chips in the United States. He has invited the money a few grants and insisted that only invoices are enough to encourage domestic chip production.
Jimmy Goodrich, senior adviser to Rand Corporation for Technology Analysis, said the invoices could be effective “if used smartly as part of a wider strategy for rejuvenating US chips that includes domestic construction and market taxes, of Chinese chips. “
“However,” added, “the United States alone represents about a quarter of global demand for brands with brands, so cooperation with allied nations is critical.”
Administration officials suggested that chip invoices could be applied to semiconductors coming to the United States on other devices. Most chips are not immediately imported – rather, assembled in electronics, games and cars in Asia or Mexico before being transported to the United States.
The United States has no system to apply invoices to brands enclosed in other products, but the office of the United States Commercial Representative has begun to consider this question during Biden’s administration. Chip industry executives say such a system would be difficult to determine, but it is possible.
Rebecca Robbins He contributed a report from Seattle.
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