Key Points
- The U.S. announced a 25% national security tariff on certain advanced semiconductors as an initial step in a broader chip policy.
- The tariff exempts chips imported to support U.S. tech infrastructure build-out and aims to spur domestic production.
- Officials say the measure could be followed by further actions depending on negotiations with other nations and industry outcomes.
The White House said a newly imposed 25% tariff on certain high-end semiconductors is a “phase one” action aimed at protecting the U.S. chip industry and supporting domestic manufacturing under national security powers. The tariff, announced by the U.S. Commerce Department, targets advanced computing chips including AI-capable processors imported into the United States. A White House official, speaking anonymously, noted further measures could follow as negotiations with foreign governments and companies continue, signalling this is just the start of a broader trade and industrial policy push.
President Donald Trump has previously threatened even steeper duties — up to 100% tariffs on semiconductors not made in the United States — as part of efforts to reduce reliance on foreign supply chains and boost in-country production. Under the plan, the current levy will not apply to chips brought in to help build U.S. technology infrastructure or strengthen domestic manufacturing capacity. That carve-out underscores a trade strategy designed to balance industry protection with support for America’s own tech ecosystem.
Officials said the action follows a formal national security investigation into semiconductor imports under Section 232 of the Trade Expansion Act, which found dependence on foreign chip supplies — particularly for critical AI and computing applications — could pose risks to U.S. economic and defence capabilities. The tariffs are meant to incentivise investment in U.S. semiconductor production and related technologies while prompting discussions with international partners about trade terms.
Industry groups and trading partners are expected to watch closely how the policy evolves. Analysts say the phased tariff approach gives Washington leverage to negotiate broader agreements while signalling a tougher posture on imports seen as weakening America’s competitive edge in semiconductor production. Some companies could face higher costs on imported chip inventories unless they qualify for exemptions tied to domestic technological buildup.
The “phase one” label suggests more tariffs or trade tools may follow if domestic investment goals are not met or if negotiations with major semiconductor exporters stall. The policy comes amid global competition for semiconductor leadership, with governments worldwide offering incentives to expand local manufacturing and avoid vulnerable supply chains.
