President Trump has escalated his use of tariffs as a tool for reindustrialization and geopolitical leverage, proposing 100% duties on semiconductors and announcing a fresh 25% tariff hike on Indian goods. The moves expand the scope of Section 232 actions and deepen the fault lines in global trade strategy.
Semiconductors Face Full Tariff Exposure Under Section 232
President Donald Trump announced Wednesday that his administration intends to impose a 100% tariff on imported semiconductors, though no implementation date or policy guidance has yet been released. The proposal follows an active Section 232 investigation, an instrument previously used to justify tariffs on steel, aluminum, and copper, into whether semiconductor imports threaten U.S. national security and industrial capacity.
Speaking at a White House briefing, Trump tied the upcoming semiconductor duties to similar actions on pharmaceuticals, with some drug imports potentially facing tariffs as high as 250%. These measures come as multiple 232 probes are underway, covering sectors such as commercial aircraft, critical minerals, jet engines, and heavy-duty trucks. The administration is using the legal framework to build economic leverage in areas deemed vital to U.S. sovereignty and supply chain resilience.
India Tariffs Signal Strategic Shift Toward Bilateral Pressure
In a parallel development, the Trump administration has ordered an additional 25% tariff on all India-based imports, effective August 27. The new duty will stack on top of another 25% country-specific tariff already scheduled to take effect this Thursday, bringing the total levy to 50% on many Indian goods. The move, outlined in an executive order, cites India’s continued import of Russian oil as the primary justification.
Trump previewed the action in a CNBC interview Tuesday, criticizing India’s energy ties to Russia and warning of additional penalties: “They’re buying Russian oil, they’re fueling the war machine … I think I’m going to raise [the tariff] very substantially.” The order gives U.S. officials authority to evaluate energy import behavior from other countries and recommend matching trade penalties if warranted.
India, in response, defended its energy strategy as a measure to ensure “predictable and affordable” costs for domestic consumers. A spokesperson for India’s Ministry of External Affairs called the targeting “unjustified and unreasonable” and said the country would take “all necessary measures” to protect its economic security. While some U.S. allies such as the EU and Japan have reached trade accords with the Trump administration, no such deal has materialized with India, despite preliminary talks earlier this year.
Tariffs Without Timing May Trigger More Risk Than Resilience
While the administration’s tariff push is framed as a long-term play to secure critical supply chains and penalize geopolitical behavior, the lack of clear implementation details, especially on semiconductors, could cause uncertainty in key manufacturing sectors. U.S.-based firms remain reliant on integrated global supply chains for chips, and rapid cost escalation may strain production before domestic fabs can absorb demand. As with India, punitive tariffs may force strategic realignments, but they also risk pushing trade partners toward rival blocs. The question now is not just how high tariffs go, but how deeply they reshape supply chain alliances.