Trump Plans Semiconductor, Pharmaceutical Tariffs Impacting US Tech, Pharma

President Donald Trump announced plans to impose new tariffs on semiconductors and pharmaceutical imports as soon as next week, aiming to encourage domestic production of these critical industries. The semiconductor tariffs could disrupt major U.S. hardware and AI companies reliant on advanced chips, with industry leaders like Intel and TSMC already investing heavily in U.S. manufacturing capacity, though scaling production remains challenging. Pharmaceutical tariffs are expected to start small and potentially rise up to 250% within a year and a half to incentivize drug manufacturing in the U.S., reflecting ongoing concerns about reliance on global supply chains. These measures stem from national security concerns and trade investigations under Section 232 of the Trade Expansion Act, providing a stronger legal basis than previous tariffs facing judicial challenges. Trump's administration has also rescinded previous AI chip export restrictions and is debating new policies, signaling a broad strategic approach to semiconductor trade and production. The tariffs could significantly impact major technology companies and the biotech industry, which depend heavily on imported materials and chips.