The Donald Trump-led US administration is considering a plan to impose tariffs on imported electronic devices depending on the number of chips in each one of them, Reuters reported, citing three sourcesUnder the proposal, the US commerce department would calculate tariffs as a percentage of the product’s estimated chip value, in a move designed to push manufacturers to shift production to America.

“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesperson Kush Desai told Reuters, regarding the matter.“The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance,” Desai added.Uncertainty remains about the scope of products that would be affected, tariff rates, and possible exemptions. The commerce department was weighing a 25% rate on chip content, and 15% for electronics from Japan and the EU, though figures were still preliminary, a source told the agency.

What will be the impact if tariff gets imposed?

If implemented, the policy would apply to a broad range of consumer goods, from toothbrushes to laptops, potentially raising costs for US households. Economists warned it could also worsen inflation. According to Michael Strain, an economist with the conservative American Enterprise Institute, the move would push up consumer prices “at a time when the US has an inflationary problem, with inflation clearly above the Fed’s target and accelerating.”He added that even domestically produced goods could get costlier due to higher tariffs on imported inputs.Trump has already rolled out sweeping tariffs this year, including 100% duties on branded drugs and 25% on heavy-duty trucks. Earlier in April, his administration launched probes into pharmaceuticals and semiconductors, calling foreign reliance a national security threat.A potential exemption linked to investments in US manufacturing, dollar-for-dollar credits only if a company shifts half its production to America, has been discussed but not finalised. Meanwhile, earlier proposals to exempt chipmaking tools faced pushback from the White House, with sources saying Trump dislikes carve-outs. Taiwan Semiconductor Manufacturing Co. (TSMC) and South Korea’s Samsung Electronics, the world’s biggest non-US chipmakers, could be among the hardest hit.

ISLAMABAD:

The Cabinet Committee on Regulatory Reforms (CCoRR), chaired by Federal Minister for Investment Qaiser Ahmed Sheikh, on Friday reviewed and approved the third quarterly Regulatory Reform Package prepared by the Board of Investment (BOI).

According to an official statement, the meeting marked another step in the government’s effort to modernise Pakistan’s regulatory framework under directives of the prime minister.

The package, developed by the BOI reform team, sets a forward-looking agenda to enhance transparency, streamline processes, and improve the ease of doing business. Key reform areas included the Regulatory Governance Strategy 2025-2030, aimed at establishing a modern legal system through creation of a Pakistan National Legal Registry (PLR).

The package also proposed simplification of bank account opening for businesses. Online onboarding for low-risk firms and the launch of an Asaan Business Bank Account (ABA) for SMEs were highlighted.

Another major component is the shift from fragmented district registries to a centralised National Business Registry managed by the Securities And Exchange Commission Of Pakistan (SECP). As per the statement, this will repeal the outdated Partnership Act, 1932. A new risk-based and technology-enabled framework for security clearance of foreign investors was also proposed, introducing statutory timelines and greater transparency.

The review of the Companies Act, 2017 formed another pillar of the package. Proposed updates focus on modernising requirements for listed and unlisted companies, removing outdated provisions and aligning with international best practices.

During the meeting, the committee reviewed all proposals in detail. The reforms were endorsed and regulators agreed on implementation. Directions were issued to federal ministries and departments to ensure time-bound execution.

The National Business Registry will eliminate duplication across district registries, allowing faster firm registration with nationwide recognition of legal status. The risk-based clearance system will give foreign investors predictable timelines, reducing uncertainty and enabling quicker project starts. Amendments to the Companies Act will cut compliance costs and improve governance by easing outdated requirements.

Federal minister for investment commended the BOI reform team and regulatory bodies for their role. He said the review reflected the government’s commitment to regulatory modernisation and creating a transparent, efficient business environment.