The US chip tariff figure could scale up to as high as 300%, as President Trump wants to ensure that America builds its domestic semiconductor supply chain.
The Trump Administration Is Looking to Impose Hefty Chip Tariffs, Once Section 232 Investigation Completes
Well, it seems like the Trump administration could impose hefty chip tariffs under Section 232, and the figure might reach 300%, which is three times higher than what was proposed before. The US government has been inconsistent regarding tariff figures, but for the chip industry in particular, President Trump has taken this matter seriously, which is why hefty chip tariffs aren't out of the equation. Here's what he had to say on the tariff figure, while sitting in Air Force One:
I’ll be setting tariffs next week and the week after, on steel and on, I would, say chips — chips and semiconductors, we’ll be setting sometime next week, week after. I’m going to have a rate that is going to be 200%, 300%?
Well, such a high tariff percentage would likely be devastating for the chip industry, mainly since firms cannot afford to pay such taxes, especially the small-scale ones. More importantly, under Section 232, it is responsible for restricting imports of goods that pose a threat to national security, and semiconductors have made their way into the list of items being examined by the Trump administration. Since it is a matter of national security, it is unlikely that the US government would compromise on chip tariffs.
There's a workaround for firms that want to avoid chip tariffs, but it would require massive investments worth at least 'tens of billions'. In a previous report, we discussed how the likes of TSMC, Samsung, SK Hynix, Apple, and NVIDIA were exempted from chip tariffs, mainly due to their commitment towards US manufacturing. It seems like the Trump administration would provide relief to those who are looking to bring their production lines into America.
It seems like the Section 232 investigation could be over by the end of August, which means that the tech industry should prepare for dramatic changes in the supply chain.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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