1.

Section 232 – Investigation Procedures and Cases

Section 232 authorizes the US Department of Commerce (the “DOC”) to investigate the impact of imported goods on national security and report to the President, who may then take special measures concerning trade, such as imposing tariffs, based on the DOC’s investigation report.

Under the Section 232 investigation procedure, the DOC must submit its investigation report to the President within 270 days after the initiation of the investigation. The President must decide on any measures within 90 days after receiving the DOC’s report. The measures must be implemented within 15 days of the decision to implement them. Furthermore, within 30 days of the decision to implement the measures, the President must submit a written statement to the United States Congress detailing the reasons for the imposition of the measures.

The first Trump Administration initiated Section 232 investigations on steel and aluminum (including derivative products) in 2017 and on automobiles and auto parts in 2018. As a result, the US imposed tariffs on steel and aluminum since 2018 and on automobiles since 2025. The second Trump Administration initiated Section 232 investigations on copper, lumber and other products since March 2025, and just a few months later, in August, it imposed tariffs on copper. Such precedents demonstrate a pattern of imposing measures more quickly compared to the previous term, where investigations were typically conducted nearly to their full duration before action was announced.

On the other hand, although the grounds for exemptions or exceptions to measures imposed under Section 232 investigations are not explicitly stated in the text of the law, during the first Trump Administration, country-specific exemptions, product-specific exemptions or Tariff Rate Quota (“TRQ”) were granted through executive orders during the imposition process. In addition, the US government also adjusted tariff rates through bilateral negotiations. However, during the current term, the Trump Administration has not granted country-specific exemptions or product-specific exceptions for tariffs imposed under Section 232 investigations. In fact, for steel and aluminum, it significantly expanded the scope of covered derivative products.
 

2.

Section 232 Investigation on Semiconductors and Semiconductor Manufacturing Equipment by Second Trump Administration

The DOC initiated a Section 232 investigation into semiconductors and semiconductor manufacturing equipment on April 1, 2025. According to the DOC’s announcement, the scope of the investigation covers semiconductors, semiconductor manufacturing equipment and their derivative products. Specifically, it mentioned semiconductor substrates and wafers, legacy chips, cutting-edge chips, microelectronics, semiconductor manufacturing equipment components and downstream products as subject to investigation. However, the scope of application may change if the President decides to impose tariffs based on the investigation results. Therefore, eligibility should be confirmed based on the Harmonized Tariff Schedule of the United States (“HTSUS”) codes specified in the actual measures.

Additionally, the DOC opened a public comment period for stakeholders from April 16, 2025, to May 7, 2025. After this, DOC will submit a report to the President by December 26, 2025, after which the President will decide whether to impose measures. However, considering the process of the previous Section 232 investigations and imposition of measures under the second Trump Administration, the possibility of early imposition of tariffs cannot be ruled out.

In particular, the Trump Administration has repeatedly hinted at the possibility of imposing tariffs on semiconductors. On August 6, 2025, President Trump announced that “We’ll be putting a tariff on of approximately 100 percent on chips and semiconductors, but if you’re building in the United States of America, there’s no charge.” Furthermore, on August 15, 2025, President Trump mentioned that the semiconductor tariff measures were imminent.
 

3.

Key Points of Investigation and Stakeholders’ Arguments in Section 232 Investigation on Semiconductors and Semiconductor Manufacturing Equipment

The key issues in the ongoing Section 232 investigation into semiconductors and semiconductor manufacturing equipment are whether semiconductor imports pose a threat to US national security and what appropriate measures should be taken to address it. In this regard, the DOC requested opinions from stakeholders through public comments. The request sought views on US domestic demand, production capacity, import dependency and risks, foreign government subsidies and trade practices, and the impact of trade measures such as tariffs on US domestic production and national security. The submitted public comments are available for viewing on the DOC’s website (Link).

A total of 154 comments were submitted in response to the DOC’s request for public comment. Among the public comments, stakeholders noted that semiconductors play a fundamental role in US national security and leadership in core technology sectors. They emphasized the global and interdependent nature of the semiconductor supply chain, stressing the importance of cooperation with trading partners to strengthen domestic manufacturing capabilities and ensure continued investment.

Stakeholders expressed concern over the negative impacts of broad tariffs and regulations on semiconductors and manufacturing equipment, including increased domestic manufacturing costs, supply chain instability, delayed investments, reduced competitiveness, and setbacks in AI and advanced infrastructure development. They stated that government policy must be designed in a selective and growth-oriented manner that aligns with the realities of global supply chains and the growth objectives of domestic industries.