US Weighs Tariffs on Chips as Commerce Chief Vows Domestic Semiconductor Production
US Commerce Secretary Lutnick says semiconductors will be made in America and that chip tariffs are under consideration.
Washington: The United States is actively considering tariffs on imported semiconductors, even as it pushes to bring chip manufacturing back to American soil. Commerce Secretary Howard Lutnick made the remarks in a CNBC interview, stating that semiconductors "will be built in America" while confirming that tariff measures on the critical component are being evaluated.
The comments signal a dual-track approach by the administration: using trade barriers to pressure foreign chipmakers while simultaneously incentivising domestic fabrication. Semiconductors are central to modern electronics, defence systems, and emerging technologies like artificial intelligence, making the sector a strategic priority.
Lutnick's statement comes amid a broader global race to secure chip supply chains. Many countries, including India, have launched production-linked incentive schemes to attract semiconductor fabs. The US move could reshape global trade dynamics, affecting major chip-exporting economies such as Taiwan, South Korea, and Japan.
Industry watchers will be looking for concrete tariff rates and timelines. Any levy on chips could raise costs for American electronics manufacturers and consumers, though officials argue it would accelerate the reshoring of production. No formal announcement has been made yet, and the proposal remains under internal review.