U.S. to release result of probe into chip imports in two weeks

The Trump administration will announce the outcomes of a nationwide safety probe into imports of semiconductors in two weeks, U.S. Commerce Secretary Howard Lutnick stated on Sunday, as U.S. President Donald Trump steered greater tariffs had been on the horizon.

Lutnick advised reporters after a gathering between Trump and European Commission President Ursula von der Leyen that the investigation was one of the “key reasons” the European Union sought to negotiate a broader commerce settlement that might “resolve all things at one time.”

Trump stated many firms can be investing in semiconductor manufacturing in the United States, together with some from Taiwan and different locations, to keep away from getting hit by new tariffs.

He stated von der Leyen had averted the pending chips tariffs “in a much better way.”

Trump and von der Leyen introduced a brand new framework commerce settlement that features across-the-board 15% tariffs on EU imports coming into the United States.

Trump stated the settlement included autos, which face the next 25% tariff underneath a separate sectoral tariff motion.

The Trump administration in April stated it was investigating whether or not intensive reliance on overseas imports of prescription drugs and semiconductors posed a nationwide safety menace.

The probe, being carried out underneath Section 232 of the Trade Expansion Act of 1962, might lay the groundwork for brand spanking new tariffs on imports in each sectors.

The Trump administration has begun separate investigations underneath the identical regulation into imports of copper and lumber. Earlier probes accomplished throughout Trump’s first time period shaped the premise for 25% tariffs rolled out since his return to the White House in January on metal and aluminum and on the auto business.

Trump has upended world commerce with a collection of aggressive levies in opposition to buying and selling companions, together with a ten% tariff that took impact in April, with that charge set to improve sharply for many bigger buying and selling companions from August 1.

The U.S. depends closely on chips imported from Taiwan, one thing Democratic former President Joe Biden sought to reverse throughout his time period by granting billions of {dollars} in Chips Act awards to lure chipmakers to develop manufacturing in the United States.