President Donald Trump signed an order establishing a 25% tariff on imports of certain semiconductors and equipment used to produce them. The White House justified the tariff on national security grounds. The levy will apply to specified imported goods, with exemptions for semiconductors supplied for the development of US chip production, use in data centers, research and development, startups, and civilian industrial applications.
The administration said that US manufacturing capacity for semiconductors is insufficient to meet national defense needs and the rising demands of the commercial sector. The United States consumes roughly one quarter of global semiconductor output but produces only about 10% of the chips it requires, creating a heavy dependence on foreign supply chains. The administration described that imbalance as a strategic vulnerability.
Earlier this year, Mr. Trump also voided a semiconductor deal between Emcore and HieFo, saying that HieFo’s acquisition of Emcore’s computer‑chip assets posed a threat to US national security. The president said HieFo is controlled by a Chinese national, which creates a risk to the domestic production of critical electronics.
