How Trump's government could justify new tariffs on chips and medicines - explained Donald Trump may have signalled his next round of tariffs (see our 9.12 post for more). And his administration is seeking to justify a potential new wave of trade barriers by ordering investigations into computer chip and pharmaceutical imports. What investigations? The Department of Commerce posted notices about the two probes overnight, with public comments now accepted for the next three weeks. Those filings showed the investigations began on 1 April, but there was no announcement at the time, so that's why we're only officially hearing about them now. These probes have been made under Section 232 of the Trade Expansion Act of 1962, which permits the president to order tariffs for the sake of national security. The investigations could provide justification for so-called sectoral tariffs designed to boost the domestic production of goods Trump says are critical to national security. Why computer chips? The probe includes assessing the potential for domestic production of computer chips to meet US demand. It will also look at the role of foreign manufacturing and assembly, as well as testing and packaging, in meeting those needs. And pharmaceuticals? The US produces about 20% of all pharmaceuticals made worldwide, but consumes 45% - far more than any other country. Drugmakers have warned tariffs could increase the chance of shortages and reduce access for patients. But Trump argues the US needs more drug manufacturing to cut down its reliance on other countries. Large drugmakers have global manufacturing footprints, and moving more production to the US could take years.