Anabelle Colaco
29 Sep 2025, 08:29 GMT+10
WASHINGTON, D.C.: The Trump administration is weighing a plan to impose tariffs on imported electronic devices based on the number of semiconductor chips they contain, three people familiar with the matter said, a move that could reshape global supply chains and raise prices for everyday consumer goods.
The draft proposal, which has not previously been reported, would allow the Commerce Department to levy tariffs equal to a percentage of the estimated value of the chip content in each product. Officials stressed that the plan remains under discussion and could still be changed.
"America cannot be reliant on imports for the semiconductor products that are essential for our national and economic security," White House spokesperson Kush Desai said when asked about the plan. "The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance."
If enacted, the tariffs would apply to a wide array of electronics, from household items such as toothbrushes to laptops and smartphones, potentially driving up costs for U.S. consumers.
Michael Strain, an economist at the American Enterprise Institute, said the plan risked exacerbating inflation. "This could push up the cost of consumer goods at a time when the U.S. has an inflationary problem, with inflation clearly above the Fed's target and accelerating," he said. Even U.S.-made goods could become more expensive, he added, as they rely on imported parts.
The potential duties would build on a series of tariffs announced by President Donald Trump this week, including 100 percent levies on pharmaceuticals and 25 percent duties on heavy-duty trucks. They also follow an April investigation into foreign reliance on pharmaceuticals and semiconductors, launched under laws that allow tariffs for national security reasons.
One source said the Commerce Department was considering a 25 percent tariff rate for chip-related content in imported devices, with slightly lower 15 percent rates for goods from Japan and the European Union. An investment-based exemption is also being discussed, under which companies could offset tariffs dollar-for-dollar if they move at least half of their production to the United States.
Taiwan Semiconductor Manufacturing Co. and South Korea's Samsung Electronics, two of the world's largest chipmakers, would be among the foreign producers most affected by such a plan.
Commerce officials had previously considered exempting chipmaking tools to avoid raising domestic production costs, but sources said the White House opposed broad carve-outs, citing Trump's aversion to exemptions.
In August, Trump said that semiconductor imports would face tariffs of about 100 percent, with exemptions only for companies building or committing to build U.S. factories.
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