Smartphones, green light, pharmaceuticals and computer chips, yellow light.

I'm David Brancaccio in Los Angeles. The Trump administration is taking steps to put higher import taxes on medicines and semiconductor chips from other countries.

The Commerce Department is examining whether it can do those tariffs in the name of national security.

Meanwhile, South Korea just announced a major financial package for its chips industry, more than $23 billion.

Some of this would help compensate for higher U.S. tariffs.

Seoul and Washington are due to begin negotiations on their respective tariffs next week.

The BBC's Gene McKenzie reports from South Korea.

South Korea is one of the world's leading chipmakers, and many of its semiconductors go straight to the

US. Today, the government said it would increase the amount of money it gives its major companies,

like Samsung, to help them whether the uncertainty caused by this US administration.

Seoul's economy relies heavily on exports, especially of chips and cars,

two industries which stand to be hit hard by tariffs.

The government is also rushing to prop up its carmakers.

Though overnight, Mr Trump suggested he might temporarily pause tariffs on cars.

It's caused stocks in Seoul's leading car company Hyundai to surge by 4%.

So Hyundai, but also Mercedes and VW stocks are up more than 2% right now.

Yesterday, Ford closed up 4%.

GM up 3.5% although those are droopy this morning.

Marketplaces Samantha Fields has more on the hints of a reprieve, at least for now, on higher import duties for cars, trucks, and parts.

Trump has not officially paused tariffs on imported cars, but he said yesterday that American

auto manufacturers need a little bit of time to transition their supply chains

and start making more cars and car parts in the U.S. and that he's looking at something to help them.

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