US weighs a new round of tariffs on semiconductors, Politico reports

[WASHINGTON] The Trump administration is considering a new round of sweeping tariffs on semiconductors, Politico reported on Thursday (Aug 27) citing eight people familiar with discussions.

A new tariff proposal could tax a wider range of tech goods. Instead of just targeting microchips, the duties would also apply to products that use them, such as laptops, gaming consoles, and data centre servers, the report said.

Commerce Secretary Howard Lutnick favours a structure that will tie foreign companies’ relief from the tariffs to investment in US chip manufacturing to boost local production, the report said.

Washington is also mulling a phase-in period for the new tariffs and the framework could still be substantially revised in the coming weeks or months, Politico reported.

Reuters could not immediately verify the report. “Reshoring critical manufacturing back to the United States is a top priority for President Trump, and the Administration has implemented a nimble, nuanced, and multi-faceted approach to drive trillions in voluntary investments in key sectors,” a White House official said in an emailed statement to Reuters.

“Unless officially announced by the Administration, any reporting about tariffs should be regarded as baseless speculation,” the official added.

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US Trade Representative Jamieson Greer said in May there were no imminent new US tariffs expected to be imposed on semiconductors, but that it ‌was important to protect the sector with duties to facilitate reshoring of chip production. REUTERS