The administration of US President Donald Trump is considering imposing new tariffs on imported electronic devices, the size of which would be determined by the number of semiconductor chips in these products.
Points of attention
- Trump administration is considering imposing new tariffs on imported electronic devices based on the number of semiconductor chips.
- The introduction of tariffs could stimulate domestic production and ensure national security, but economists warn of potential consumer price increases and inflation.
- Proposed tariffs include a possible 15% duty on chip-containing products from Japan and the EU, and a 25% duty for other countries.
Trump plans to impose new tariffs on imported electronic devices
This was reported to Reuters by sources familiar with the government's plans.
Under the previous scheme, the US Commerce Department could impose duties as a percentage of the value of the chips that make up a device. This means that the new rules could apply to everything from household products like electric toothbrushes to laptops and other sophisticated devices.
White House spokeswoman Kush Desai said the US cannot remain dependent on imports of semiconductors, which are critical to national and economic security.
According to him, the administration is taking a comprehensive approach, including tariffs, tax breaks, deregulation, and energy development, to stimulate domestic production.
Economists warn that the implementation of the plan could lead to rising prices for consumer goods.
Michael Strain of the American Enterprise Institute said the new tariffs could push up inflation, which is already above the Federal Reserve's 2% target, and he also noted that even U.S.-made goods could become more expensive due to higher costs of imported components.
The largest chipmakers outside the US include Taiwan's TSMC and South Korea's Samsung. According to sources, the possibility of imposing a 25% tariff on chip-containing imports is being considered, while for electronics from Japan and the EU, the tariff would be 15%. However, it is reported that these figures are preliminary.
The option of partial exemption from duties for companies that will transfer at least half of their production to the US is also being discussed, but the mechanism for implementing this idea has not yet been determined.
According to three people familiar with the matter, the U.S. Commerce Department had previously proposed not imposing tariffs on chip-making equipment to avoid raising the cost of semiconductors in the U.S. However, the White House reportedly rejected the idea, citing Trump's general aversion to any exemptions.
Previously, Donald Trump had already announced his intention to impose a 100% tariff on chips, but with a significant exception for companies that invest in production in America or commit to doing so in the future.
