Results of the investigation into U.S. chip imports will be made public within two weeks
The Trump administration has announced a new trade agreement with the European Union (EU), while the results of a national security probe into semiconductor imports are expected within two weeks.
The new trade agreement, aimed at "resolving all things at one time," includes across-the-board 15% tariffs on EU imports entering the United States. This agreement, however, does not specifically mention semiconductor imports, unlike the potential tariffs suggested by President Trump earlier.
The trade agreement comes after the EU sought to negotiate a broader trade agreement with the U.S., citing the semiconductor investigation as a key reason. The probe, which uses Section 232 of the Trade Expansion Act of 1962, has been conducted to examine semiconductor imports for national security risks and may result in tariffs designed to incentivize chip manufacturing in the U.S.
The investigation, nearing completion, has prompted companies from Taiwan and other countries to plan domestic investments to avoid potential tariffs. The administration is prepared to impose sweeping new tariffs on imported semiconductors unless foreign chipmakers increase production within the U.S.
The probe focuses on whether the U.S.'s heavy dependence on foreign-made semiconductors, especially from Taiwan, constitutes a national security risk. The administration is concerned that reliance on foreign chips jeopardizes U.S. national security and supply chain resilience.
In a meeting between President Donald Trump and European Commission President Ursula von der Leyen, the semiconductor investigation was discussed. However, the new trade agreement does not specify whether it was discussed in the same meeting.
The findings of the semiconductor probe are expected to influence tariffs and broader semiconductor supply policies, affecting global chipmakers like Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics, and U.S. tech firms reliant on imported chips such as Nvidia, Tesla, and Apple.
Separate Section 232 probes are also underway on imports of lumber and copper, while export controls on AI-related chips to China continue to be enforced.
The announcement of the new trade agreement comes as President Trump suggested higher tariffs were on the horizon for imports of semiconductors. The Trump administration has been conducting the national security probe into semiconductor imports to address these concerns.
The new trade agreement with the EU and the upcoming results of the semiconductor probe mark significant developments in the administration's strategy to reduce dependency on foreign suppliers critical to technology and national defense.
- The new trade agreement, combined with the upcoming findings of the semiconductor probe, represents a significant shift in the Trump administration's approach towards both the industry and finance, as they aim to reduce dependency on foreign suppliers crucial to technology and national defense.
- The nationwide tariffs imposed by the new trade agreement and potential tariffs on imported semiconductors, if the investigation results in such measures, are likely to have a profound impact on general-news and politics, influencing the operations and strategies of global chipmakers and US tech companies.
