Targeting America’s chip dependence, President Trump prepares sector-specific tariffs on semiconductor imports, starting with lower rates and escalating to steep duties if manufacturers fail to reshore production.
US President Donald Trump has announced plans to introduce sector-specific tariffs on semiconductor imports this week. Speaking to reporters on Friday, Trump stated that the measure is intended to encourage chipmakers to relocate their production to the United States.
While the final duty rate has not been disclosed, Trump suggested that tariffs would start low and increase over time. The initial rate would allow companies to establish manufacturing operations in the US. If they fail to do so, he indicated that much higher duties would follow.
Earlier this month, Trump had signalled that tariffs of ‘approximately 100%’ were under consideration for the semiconductor sector. The move comes as the White House conducts a Section 232 investigation into the national security risks posed by reliance on imported semiconductors and the resilience of the domestic supply chain.
The Section 232 mechanism allows tariffs or restrictions to be imposed if imports are deemed a threat to national security. Similar investigations in previous years have resulted in duties on steel, aluminium and copper products.
The semiconductor review is one of several active probes under the Trump administration. Other inquiries are examining pharmaceuticals, critical minerals, commercial aircraft, jet engines, and medium- and heavy-duty vehicle parts.
Semiconductors are a vital component for a wide range of industries, including automotive, consumer electronics, telecommunications and defence. The US has sought to boost domestic production through subsidies and legislation, but imports still account for a large share of supply.
By signalling tariffs, the administration aims to accelerate the reshoring of chip manufacturing capacity. However, industry groups warn that abrupt or heavy-handed duties could disrupt global supply chains and raise costs for US manufacturers that rely on foreign-made chips.
