U.S. weighs new tariffs on semiconductors, report says

• Tariffs would expand beyond chips to cover data center servers, laptops, and gaming hardware, according to eight sources familiar with the matter
• The measures are still in early development and subject to significant changes, with a staggered implementation period planned
• Trump previously proposed tariffs on semiconductors and chips but exempted companies building domestically; a 25% tariff on certain AI chips was already imposed in January

Summary: U.S. Considers New Semiconductor Tariffs

Key Developments

The Trump administration is reportedly considering imposing new tariffs on semiconductors and related technology products, according to a Politico report published Thursday. The proposed duties would extend beyond chips to include laptops, data center servers, and gaming hardware.

Implementation Details

• The measures are in early planning phases and subject to significant changes over coming months
• A staggered rollout period is being considered
• The White House stated that "reshoring semiconductor manufacturing is a top priority for President Trump," noting policies have already secured "hundreds of billions of dollars of investments" in the sector

Background Context

• Previous semiconductor tariffs were introduced under the Biden administration
• Trump announced plans last year for tariffs on semiconductors and chips, though they didn't materialize
• The president previously indicated tariffs of unspecified rates on semiconductors, with exemptions for domestic manufacturers
• In January, the Trump administration imposed a 25% tariff on certain AI chips

Market Implications

The potential tariffs come as U.S. tech companies compete with China in AI infrastructure development. Industry concerns focus on Chinese firms reportedly accessing advanced computing capabilities despite heavy U.S. export restrictions, primarily through overseas cloud providers. U.S. legislation is under discussion to address this loophole, though implementation hurdles remain.

The expanded tariff scope could significantly impact major semiconductor and technology hardware companies, particularly those with offshore manufacturing operations, as the administration pushes to reshore chip production.