The Trump administration is preparing new, targeted tariffs on foreign-made semiconductors, Commerce Secretary Howard Lutnick confirmed Wednesday. Companies can avoid the duties by committing to build chips in the United States, and the plan under consideration would also widen beyond chips to cover servers, PCs and gaming consoles.
Commerce Secretary Howard Lutnick confirmed the Trump administration is preparing new, targeted tariffs on semiconductors made outside the United States, telling CNBC's Squawk Box program on Wednesday. Lutnick said companies can avoid the tariffs by committing to build more chips in America, confirming a Politico report from the previous week.
From a blanket threat to a targeted duty
Lutnick did not specify what the new tariffs will entail. Trump had threatened a 100% tariff on chip imports through 2025. He then proposed a 25% ad valorem duty in early 2026. Lutnick told CNBC the new approach ties the duty to domestic investment: "if you don’t build here, expect to pay to enter the greatest market".
However, the shift follows the Supreme Court striking down a bulk of the president's tariffs earlier this year, and the administration has since revived its tariff push in recent months.
Chipmakers already expanding U.S. capacity
Lutnick pointed to recent agreements with South Korea and Taiwan that push their chipmakers toward more U.S. production. TSMC and Samsung have both committed hundreds of billions of dollars to increasing their U.S. capacity. Lutnick said more investment commitments were likely in the coming weeks.
Politico reported last week that the tariffs under consideration would expand to cover servers, personal computers and gaming consoles beyond chips themselves. The report also said the administration is considering a phase-in period for the new tariffs.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
