An unusual situation is unfolding in the global electronics market. The administration of US President Donald Trump is considering introducing tariffs on electronic devices based on the number of chips they contain. According to Reuters, this approach is intended to attract as much manufacturing as possible back to the United States.
Currently, the US Department of Commerce is weighing a plan to impose tariffs on imported electronic devices, with the rate set as a percentage of the estimated value of the chips inside. This proposal is one of several under review by the White House as ways to strengthen domestic chip production. Analysts at The Wall Street Journal note that the Trump administration may also require chipmakers to manufacture in the US an amount equal to what they import from abroad.
Earlier this year, the US president announced intentions to impose a 100% tariff on all semiconductor imports, with an exemption for companies operating plants in the United States. However, the measure has not yet taken effect.
President Trump has also repeatedly voiced concerns over national security due to the US dependence on foreign chips. The White House previously took a 10% stake in Intel as a move to support the development of American chip production.
Nevertheless, experts are skeptical that Trump’s initiatives will lead to a significant increase in domestic chip manufacturing. Tariffs on popular electronic devices could also drive up consumer prices. Experts suggest that US-made chips could potentially become significantly more expensive than their foreign counterparts.
Still, Trump’s tariff threats have secured commitments from several large tech firms to boost their US manufacturing. In response, TSMC, the world’s largest chipmaker, has pledged $165 billion in US investments. Other companies have followed suit: tech giant Apple is planning $500 billion in US investments over the next four years, while Microsoft intends to spend $80 billion on infrastructure, with more than half of that amount going to the United States.
