Commerce Secretary Announces Semiconductor Probe Timeline
Commerce Secretary Howard Lutnick announced that the Trump administration will reveal the findings of a national security semiconductor probe into semiconductor imports within two weeks. The announcement occurred during a meeting in Scotland between President Trump and European Commission President Ursula von der Leyen.
Semiconductor Probe Drives EU-US Trade Talks
Lutnick revealed the semiconductor probe as a key issue motivating the European Union to negotiate a broader trade agreement with the US. The deal includes tariffs of 15% on most EU imports and 25% on automotive products. After finalizing the agreements, Trump emphasized the importance of stability and predictability for businesses on both sides of the Atlantic.
Companies Shift Focus Amid Semiconductor Probe
President Trump indicated that the pending semiconductor probe has encouraged companies, including Taiwanese manufacturers, to invest in chip production within the United States to avoid upcoming tariffs. Lutnick confirmed that electronics previously exempt from tariffs will now be covered under the semiconductor-specific levies.
Background of the Semiconductor Probe Investigation
The Commerce Department launched the Section 232 semiconductor probe on April 1 to examine whether reliance on foreign semiconductor imports poses a national security threat. The probe covers chips, manufacturing equipment, and related products. While the formal report deadline is December 27, Lutnick suggested an accelerated timeline.
This probe complements Trump’s broader trade strategy, which includes investigations into copper, lumber, steel, aluminum, and automotive products.
Summary
This accelerated semiconductor probe signals potential new tariffs, increased domestic chip manufacturing, and significant trade impacts between the US and EU.
