U.S. Considers New Semiconductor Tariffs With Possible Relief for Domestic Producers

U.S. Commerce Secretary Howard Lutnick said on Wednesday that the Trump administration is considering a new round of import tariffs on semiconductors that could further raise duties on foreign chips to encourage more manufacturing to move to the United States. According to Odaily, the tariffs could be paired with exemptions for companies investing in U.S. manufacturing, similar to measures the Trump administration previously used for the pharmaceutical industry. Lutnick said the principle for the semiconductor industry is that companies producing in the United States would receive tariff relief, while those not producing in the country would face tariffs. U.S. President Donald Trump has already imposed a 25% tariff on some advanced semiconductors and ordered additional import duties on those chips in January after the Commerce Department completed a trade investigation. The next round of tariffs could also extend beyond semiconductors to products containing chips, including data center servers and consumer electronics imports.