Trump Considers Tariffs on Electronics Based on Chip Count

 

The Trump administration is reportedly considering a new tariff strategy targeting foreign electronic devices, with fees based on the number of semiconductor chips each product contains. Sources familiar with the matter indicate that the Commerce Department may impose tariffs calculated as a percentage of a device’s chip value.

This initiative aims to encourage companies to shift production and supply chains to the United States, reinforcing domestic semiconductor manufacturing. White House spokesperson Kush Desai emphasized the national security aspect, stating, “America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security.”

Experts suggest that such a policy could significantly impact a wide range of electronics, from smartphones to laptops, which often contain multiple semiconductor components. If implemented, the tariffs could disrupt global supply chains and potentially increase consumer prices in the U.S.

While the Commerce Department has not commented on the proposal, insiders note that the plan is still under review and subject to change. This move aligns with broader efforts by the U.S. government to strengthen domestic semiconductor production, including subsidies and export controls targeting key foreign competitors.