WASHINGTON—President Donald Trump on Jan. 14 signed an executive order to impose a 25 percent tariff on semiconductors imported into the United States that are not used domestically.
The executive action is part of a Section 232 trade investigation into semiconductor imports.
Under the order, semiconductors imported into the United States but not used domestically to build out the U.S. artificial intelligence or computing architecture will be subject to the 25 percent tariff, according to the White House.
The chips that are “transshipped through the United States to other foreign countries, would be subject to that 25 percent tariff,” White House staff secretary Will Scharf told reporters during a meeting in the Oval Office.
The president also signed another order to establish a process to help the United States secure its international supply chain for critical minerals and related products.
Semiconductors are essential to almost all modern electronic devices, from pickup trucks to cell phones, refrigerators, and hypersonic missiles.
Last year, Trump ordered an investigation into national security risks posed by the import of semiconductors.
The primary objective of the probe was to evaluate the potential for developing domestic semiconductor manufacturing capability to meet U.S. demand for advanced computer chips and to understand the role of foreign suppliers in supporting this goal.
The United States produces about 12 percent of the world’s semiconductors but relies heavily on imports from Taiwan and South Korea for advanced chips used in artificial intelligence. This dependence poses risks to both national and economic security.
Over the years, the United States has steadily lost its share of global semiconductor manufacturing, as U.S. companies have shifted their focus more toward design and research while offshoring chip manufacturing.
According to estimates, Taiwan Semiconductor Manufacturing Co. produces more than 90 percent of the world’s advanced AI logic chips.
The investigation was also aimed at advising the administration on measures to limit exports of U.S.-designed chips to China, whose share of the semiconductor manufacturing market is rapidly increasing.
Washington has long expressed concern that providing China with advanced semiconductors could enhance Beijing’s global influence, as the chips support military applications such as autonomous weapons, cyberwarfare systems, and surveillance infrastructure.













