U.S. Administration Eyes New Tariffs on Semiconductor Imports
The U.S. administration is contemplating a new wave of tariffs, this time targeting the semiconductor industry, after recently lifting tariffs on some electronic imports. This move signals a strategic shift in trade policy with significant implications for the global electronics supply chain.
In a recent social media post, former President Donald Trump hinted at a broader assessment of the electronics supply chain, stating, “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigation.” The investigation falls under Section 232 of the Trade Expansion Act of 1962, empowering the president to restrict imports deemed crucial to national security.
The initiative is backed by Kevin Hassett, director of the National Economic Council, who explained to CNN, “Semiconductors are the key, important part of a lot of defense equipment. And there’s going to be a semiconductor 232 that studies those things carefully and decides what has to be on-shored in order to protect America.”
Comparing the potential semiconductor tariffs to the existing 25% tariffs on steel and aluminum, Hassett emphasized the national security risk posed by the lack of domestic semiconductor production. “It actually is the case that it’s a very uncomfortable amount of Chinese input in our actual weapons systems,” he noted.
This development comes shortly after the U.S. Customs and Border Protection lifted tariffs on certain electronics, including smartphones and computers, although a 20% “fentanyl” tariff remains on Chinese technology due to China’s involvement in the international drug trade.
Commerce Secretary Howard Lutnick indicated that the electronic tariff exemptions are a temporary measure, soon to be replaced by the forthcoming semiconductor tariffs. “What [Trump] is doing is he’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick told ABC News.
China remains the leading supplier of electronic products to the U.S., followed by Mexico, Taiwan, Vietnam, and Malaysia, according to the U.S. International Trade Commission.
