US Considering New Set of Tariffs on Semiconductors
The Trump administration is thinking about a set of tariffs on semiconductors that might also include a wider range of technology products, according to a report from Politico.
The suggested US semiconductor tariffs could cover not microchips but also items that use them, like laptops, gaming consoles and data centre servers. The report mentioned eight people who know about the talks.
Commerce Secretary Howard Lutnick is supporting a plan that would give tariff relief to companies if they invest in US chip manufacturing, according to Politico. This idea is meant to get more semiconductor production to happen inside the country.
The administration is also thinking about an introduction period for the possible duties. However, the plan is still being developed. Could change a lot in the next few weeks or months.
Reuters said it could not verify the Politico report. The White House and the US Commerce Department also did not answer requests for comment.
The possible action happens as Washington keeps trying to get semiconductors made in the US. The US has been working to cut down on using foreign supply chains for chips, which are used in things like electronics, cars, artificial intelligence systems and data centres.
New US semiconductor tariffs could therefore have an impact than earlier steps that mainly focused on imported chips. Companies that make devices with semiconductors might also pay more if the new duties come into place.
The possible tariffs could also influence foreign technology companies that sell products in the US market. Businesses might have to change their supply chains or put money into US manufacturing to deal with the duties.
US Trade Representative Jamieson Greer said in May that no new tariffs on semiconductors were expected then. He also said that using tariffs to protect the sector was important to help bring chip production to the US.
The latest idea shows that the administration is still looking for ways to use trade policy to make the domestic semiconductor industry stronger.
However, there is no choice yet on what the US semiconductor tariffs will look like or when they will happen. The plan could be changed before any new duties are officially put in place.
