U.S. Launches Tariff Probe on Robots, Machinery, Medical Devices

The United States has initiated an investigation into the import of robots, industrial machinery, and medical devices, laying the groundwork for potential new tariffs. The investigation, launched on September 2, is being conducted under Section 232 of the Trade Expansion Act. This section allows the president to impose tariffs on goods deemed critical to national security. The Commerce Department has 270 days to submit policy recommendations to the president.

The investigation expands the range of industries that could face tariffs, as the administration aims to encourage domestic manufacturing by increasing the cost of imported goods. Currently, investigations are ongoing for imports of pharmaceuticals, semiconductors, aircraft, key minerals, heavy-duty trucks, and other products. The Trump administration has already used this law to impose tariffs on automobiles, copper, steel, and aluminum.

Any tariffs resulting from these investigations will be in addition to the country-specific tariffs already imposed by the Trump administration. However, some major economies, such as the European Union and Japan, have reached agreements with the U.S. to prevent these tariffs from being layered on top of each other.

If the broad-based tariffs imposed under emergency powers on numerous economies are overturned by federal courts, the ongoing investigations are seen as a backup plan. The Supreme Court has agreed to hear challenges to these tariffs, which have already been ruled illegal by two lower courts.

Tariffs imposed under Section 232 could last longer and remain in effect even across different presidential terms, although they take longer to implement compared to those imposed under the International Emergency Economic Powers Act.

The new investigations reflect concerns within the Trump administration about the U.S.'s over-reliance on foreign suppliers for various medical products, including syringes, sutures, catheters, and gauze. The Commerce Department will also review the trade situation for personal protective equipment, such as gloves and masks, which became ubiquitous during the COVID-19 pandemic.

The new medical device investigation does not include prescription drugs, biologics, and other pharmaceuticals, which are being reviewed in a separate Commerce Department investigation.

According to the notice, the investigation into robots and industrial machinery will focus on computer-controlled mechanical systems, milling machines, and widely used stamping and assembly equipment in factories.