The Donald Trump administration is preparing a new system of targeted tariffs on foreign-made semiconductors, Commerce Secretary Howard Lutnick has said, with companies that expand production in the United States potentially able to avoid the duties.
Speaking to CNBC’s Squawk Box on Wednesday, Mr Lutnick confirmed a report that Washington is considering a fresh round of semiconductor tariffs. He said the policy was intended to encourage manufacturers to build more capacity domestically.
“What you’re going to see is targeted, thoughtful tariff policy that basically says if you build here, you don’t pay,” Mr Lutnick said.
He did not disclose the proposed tariff rates or say when the measures might come into force. The administration is also considering extending duties beyond chips to products that contain them, including laptops, gaming consoles and data-centre servers, according to Politico.
A phased introduction of the tariffs is reportedly under consideration, although the structure remains subject to change. The proposals are designed to link tariff relief for foreign manufacturers to investment in American semiconductor production.
The White House imposed a 25 per cent duty on certain advanced computing chips in January, while warning that broader tariffs on semiconductors and related products could follow. That measure was introduced under Section 232 of the Trade Expansion Act, which allows import restrictions to be imposed on national-security grounds.
Mr Lutnick pointed to agreements with Taiwan and South Korea as evidence that the administration’s approach was already encouraging investment in the US. Taiwan agreed in January to support at least 250 billion dollars (£190 billion) in new direct investment in American semiconductor, energy and artificial-intelligence capacity.
TSMC and Samsung have both been expanding their US operations, and Mr Lutnick said further investment commitments could be announced in the coming weeks.
The proposed tariffs would add to uncertainty for technology companies that rely on global semiconductor supply chains. The administration has argued that the measures are necessary to reduce dependence on overseas production and rebuild the US chip industry.
