US President Donald Trump is set to unveil new tariff rates on imported semiconductors over the next few days, signalling a shift in US trade policy impacting the technology sector.
This announcement suggests that the previous exclusion of smartphones and computers from tariffs on Chinese imports could soon be reversed as part of efforts to reorganise trade within the semiconductor industry.
During a conversation aboard Air Force One with reporters, Trump highlighted plans to simplify the process by promoting domestic production of chips and semiconductors. “We wanted to uncomplicate it from a lot of other companies, because we want to make our chips and semiconductors and other things in our country,” Trump said. While he remained non-committal about the possibility of exemptions for products like smartphones, he emphasised the need for flexibility in policy implementation. “You have to show a certain flexibility. Nobody should be so rigid,” Trump said.
National security investigation launched
In a parallel move, Trump has initiated a national security trade investigation into the semiconductor industry. He announced via social media that the forthcoming National Security Tariff Investigations will examine the electronics supply chain. This aligns with recent White House announcements that initially excluded certain tech products from steep reciprocal tariffs, sparking hope that key consumer electronics might avoid price hikes amid ongoing US-China trade tensions.
President Donald Trump has directed the Commerce Department to undertake the investigation that could potentially result in the imposition of new tariffs on semiconductor technology, aiming to safeguard national security. A White House official, speaking anonymously to POLITICO, confirmed this development. The probe will be conducted under Section 232 of the Trade Expansion Act of 1962, a provision that empowers the president to limit imports considered a risk to national security. The official elaborated that the objective of this investigation is to “revive US manufacturing in critical technologies,” suggesting a strategic effort to bolster domestic production capabilities and reduce reliance on foreign supply chains in pivotal technology sectors.
Despite these announcements, Commerce Secretary Howard Lutnick has confirmed that new duties will be imposed on critical Chinese technology products, including semiconductors, within two months. These tariffs will be applied separately from existing reciprocal tariffs, which recently increased levies on Chinese imports to 125%. Targeted products will include smartphones, computers, and other electronic devices.
At a recent Republican National Congressional Committee event, Trump warned TSMC of potential 100% tariffs if it does not advance its planned US semiconductor manufacturing facilities. He criticised former President Joe Biden’s administration for granting $6.6bn to TSMC’s US subsidiary under the CHIPS and Science Act, suggesting such financial support was unnecessary. Reports have also emerged about potential penalties for TSMC linked to a US export control investigation involving a chip developed by Sophgo, which is similar to Huawei’s Ascend 910B AI processor.
Recently, Micron Technology reportedly began applying a tariff-related surcharge on selected memory products sold in the US. A Reuters report indicates this move responds to Trump’s latest trade measures. Although semiconductors were initially excluded from these tariffs, memory modules and solid-state drives remain subject to surcharges aimed at offsetting costs associated with new levies.
Read more: Micron to pass on tariff costs to US buyers of memory products
