Lutnick Says Trump Administration Weighs New Semiconductor Tariffs

US Commerce Secretary Lutnick said Wednesday that the Trump administration is weighing a new round of import tariffs on semiconductors, a move that could push duties on foreign-made chips higher and pull more chip manufacturing to the United States. Lutnick described the possible tariffs as one half of a paired policy: new duties could be combined with tariff relief for companies investing in American manufacturing, following the playbook the administration used with the pharmaceutical industry. “That is the principle that should apply to the semiconductor industry: If you make it in America, we will give you a tariff exemption. If you don’t make it in America, you will pay a tariff. It’s a very smart approach, and it works,” Lutnick said. The earlier record on chips is already substantial. Trump has imposed 25% tariffs on some advanced semiconductors, and after the Commerce Department finished a related trade investigation, he ordered tariffs on those chips this January. The next round may also be broader in scope. Rather than covering only semiconductors, tariffs could extend to products containing chips, with imports of data center servers and consumer electronics potentially affected.