A concept picture of 5G chip Photo: VCG

The US has reportedly initiated investigations into imports of semiconductors and pharmaceuticals as part of a bid to impose tariffs on both sectors. A Chinese expert criticized this move as an extension of unilateralism and protectionism, which reflects the confusion and inconsistency in the US administration's tariff policy and will not achieve its goal of re-shoring US manufacturing.

The US administration is proceeding with probes into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors on grounds that extensive reliance on foreign production of medicine and chips is a national security threat, Reuters reported on Monday, referencing US Federal Register filings.

The filings initiate 21-day public comment periods and represent the White House's latest use of Section 232 of the Trade Expansion Act of 1962 as justification for sectoral tariffs aimed at boosting domestic production of goods that the administration says are critical to national security, according to the report.

"The US' erratic move extends its unilateralism and protectionism, and the US government's frequent policy reversals reflect confusion and inconsistency in its tariff policy," He Weiwen, a senior fellow at the Center for China and Globalization, told the Global Times on Tuesday.

While the US administration aims to re-shore production of semiconductors and pharmaceuticals to the US, it is unlikely to achieve its goal, He said. "For example, electronic products have a long supply chain that is cross-border, which needs more than one generation to rebuild. Thus, the US' push to bring back manufacturing to the US will ultimately harm US companies and global supply chains, with American consumers bearing the cost as well."

Just days ago, the US administration reportedly granted exemptions from "reciprocal tariffs" to computers, smartphones, semiconductor manufacturing equipment and integrated circuits, many of which are imported from China, according to a Reuters report.

However, US Commerce Secretary Howard Lutnick said Sunday that the exemptions were only a temporary reprieve, with the secretary announcing that those items would be subject to "semiconductor tariffs" that will likely come in "a month or two," ABC News reported.

"The mass confusion created by this constant news flow out of the White House is dizzying for the industry and investors and creating massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand," Dan Ives, an analyst for US financial services firm Wedbush Securities, said in a note sent to the Global Times on Tuesday.

As tech leaders and the overall tech industry knew that if these tariffs went into effect it would essentially be a shut off valve for getting products to the US consumers, and US consumers would have to significantly retreat on spending given these sky-high price tags and the economic impact would be hard to quantify... but ultimately push the economy closer to recession odds, he wrote.

Responding to the shifting tariff policies, Chinese Foreign Ministry spokesperson Lin Jian stressed at a regular press conference on Monday, facts have shown and will continue to show that there are no winners in a trade war and protectionism will lead nowhere.

"The tariff tsunami hurts the US itself as well as other countries. We urge the US to quit maximum pressure and resolve issues through dialogue on the basis of equality, respect and mutual benefit," Lin said.

The US side should completely cancel the wrong practice of "reciprocal tariffs" and return to the right path of resolving differences through mutual respect and equal dialogue, China's Ministry of Commerce said on Sunday.