- Trump administration plans semiconductor tariffs tied to US chip manufacturing investment
- Commerce Secretary Lutnick confirms new tariffs on semiconductors are under consideration
- Tariff relief offered to companies that build chip production capacity in the United States
The Trump administration is working on a tariff framework for semiconductors that would link relief from import duties to companies building chip manufacturing capacity in the US, Commerce Secretary Howard Lutnick told CNBC.
The administration has been preparing semiconductor tariffs for some time, although it has not publicly detailed the measures under consideration. Lutnick also confirmed a POLITICO report from last week that the White House was considering a new round of tariffs on semiconductors.
"I think what you're going to see is targeted, thoughtful tariff policy that basically says if you build here, you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world," Lutnick told CNBC.
Semiconductor Tariffs In The Works
Lutnick said companies are aware that the tariffs are coming, without providing details on their potential rates or scope.
"We will be successful in semiconductors. They're going to be built in America," CNBC reported quoting Lutnick as saying.
POLITICO reported last week, citing eight people familiar with the discussions, that the Trump administration was considering sweeping tariffs on semiconductors. The report said one approach under consideration could extend the duties beyond chips to products that use them, including laptops, gaming consoles and data-centre servers.
According to POLITICO, Lutnick favours a structure under which foreign companies could receive tariff relief in exchange for investing in US chip manufacturing. The administration was also considering a phase-in period, although the framework could still change in the coming weeks or months, the report said.
The proposed tariff policy also reflects a broader tension between the administration's efforts to increase domestic chip production and its push to maintain US leadership in artificial intelligence, POLITICO reported.
TSMC has committed $265 billion to its Arizona plants, which the report described as the largest foreign direct investment in US history. Even after the plants are fully built, however, the company expects about 30% of its most advanced capacity to be located in Arizona, with much of that capacity still years away, POLITICO reported.
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