Beijing, China – The Trump administration is contemplating imposing new tariffs on semiconductors as part of a broader investigation into the electronics supply chain for national security reasons. Kevin Hassett, director of the National Economic Council, emphasized the importance of semiconductors in defense equipment during an interview with CNN’s Jake Tapper. Hassett drew parallels between potential semiconductor tariffs and current tariffs on steel and aluminum imposed under Section 232 of the Trade Expansion Act of 1962.
According to Hassett, the presence of Chinese input in the manufacturing of U.S. weapons systems poses a significant national security concern. The consideration of additional tariffs on semiconductors, crucial components in various products such as cars and cell phones, follows the recent lifting of tariffs on certain electronics like smartphones and computers by U.S. Customs and Border Protection. The administration views the removal of these “reciprocal” tariffs as a temporary measure ahead of the anticipated semiconductor tariffs.
Commerce Secretary Howard Lutnick confirmed that the current exemptions for electronic tariffs will soon transition into semiconductor tariffs being implemented in the coming month or two. The move aims to ensure that these products are subject to a specialized tariff to facilitate their reshoring back to the United States. Notably, China stands out as the top source of electronic products for the U.S., followed by countries like Mexico, Taiwan, Vietnam, and Malaysia.
The proposed semiconductor tariffs represent a strategic shift in U.S. trade policy, focusing on bolstering domestic production in critical areas like semiconductors to enhance national security. The administration’s move to reassess the electronics supply chain aligns with ongoing efforts to mitigate potential risks associated with reliance on foreign manufacturers for key technological components. As the investigation progresses, stakeholders in the electronics industry and trade experts are closely monitoring developments to anticipate the impact of these potential tariffs on global supply chains and market dynamics.