The Trump administration is considering broad new tariffs on semiconductor-related imports, including chips, laptops, video game consoles and data center servers, as part of efforts to accelerate domestic chip production.
Eight people familiar with the matter, citing reporting by Politico, said the White House is exploring a framework under which foreign companies could seek exemptions from the proposed duties if they commit to building or expanding semiconductor manufacturing facilities in the United States. Commerce Secretary Howard Lutnick has advocated for this approach, according to the sources.
Implementation of the tariffs is expected to be phased in gradually, though the administration may refine the policy over the coming weeks or months. The proposal comes as U.S. technology firms face persistent supply constraints and rising costs for memory chips, which are critical components for artificial intelligence systems.
Industry groups have pushed back against the tariffs, arguing that domestic chip fabrication plants require billions of dollars in investment and several years to construct. Until domestic capacity expands, American companies will continue to rely on imports from Asian suppliers in Taiwan, South Korea and Malaysia.
Nvidia, a leading AI chipmaker, warned on Wednesday that its gross profit margins would come under pressure in the coming quarters due to elevated memory chip prices. The company’s executives have highlighted the strain on profitability as supply chain bottlenecks persist.
The administration’s initiative aligns with broader efforts to reduce U.S. dependence on foreign semiconductor supply chains, particularly from Asia, amid geopolitical and economic concerns.
