Trump’s Tariff Talk: Brace for Big Changes on Pharmaceuticals and Chips!

The United States will conclude its investigations into semiconductor and pharmaceutical imports by the end of this month to evaluate their national security implications, Commerce Secretary Howard Lutnick announced Tuesday. This development raises the possibility of new tariff announcements.

Lutnick’s statement came during a CNBC interview, shortly after President Donald Trump revealed in a Cabinet meeting that his administration plans to impose tariffs on pharmaceuticals, chips, and “other big ones.” Trump also disclosed a proposal to levy a 50 percent tariff on copper imports.

“The studies on pharmaceuticals and semiconductors will be completed by the end of the month,” Lutnick explained. “The president will then establish his policies, and I’ll defer to him on how he chooses to proceed.”

Lutnick was referring to the investigations he initiated in April under Section 232 of the Trade Expansion Act of 1962. This law empowers the president to adjust imports into the United States when they are deemed to threaten national security.

South Korean tech giants Samsung Electronics Co. and SK hynix Inc. are closely monitoring these investigations, as the outcomes could significantly impact tariff rates on their products.

Lutnick confirmed that the investigation into copper imports has been concluded.

“We’ve completed our study and submitted it to the president,” Lutnick stated, adding that Trump will announce copper tariffs on Truth Social later today and sign a related proclamation.

He indicated that the copper tariff is likely to take effect either at the end of this month or on August 1.

As commerce secretary, Lutnick is tasked with conducting these national security investigations and presenting findings and recommendations to the president. The president then has 90 days to review the report, determine whether he agrees with the findings, and make a decision.

During the Cabinet meeting, Trump mentioned that his administration would “announce something very soon” regarding pharmaceuticals. He suggested that pharmaceutical companies would be given a grace period to relocate their production to the U.S. if they wish to avoid tariffs.

“We’re going to give companies about a year… a year and a half to bring their pharmaceutical production into the country,” Trump stated. “After that, they’ll face very high tariffs, possibly 200 percent. We’re allowing them time to get their operations in order.”