Confusion reigns as industry awaits US chip tariff revelation
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President Trump has said that this week he would announce the tariff rate for chips and related semiconductor products imported into the US; and that the tariffs would come into effect in the “not-distant” future.
Elsewhere the estimate was given that tariffs could begin within a month or two. President Trump had previously indicated that the semiconductor tariff could be set at between 25 and 100 percent of the import price.
It remains unclear whether the US administration of President Trump is prepared to allow for company-specific tariff exceptions in the semiconductor sector.
The Taiwanese foundry TSMC, the world’s leading chip manufacturer, could be a candidate for exceptional treatement as it has made a major commitment to build up close to leading-edge chip manufacturing capability in the US.
TSMC, Trump announce an extra US$100 billion capex in the US
President Trump made his latest disclosures as he spoke to reporters on the Air Force One flight back to Washington DC, Sunday after playing golf in West Palm Beach, Florida over the weekend.
However, earlier in the day Trump has said on his Truth social media channel that the administration was going to conduct a national security trade probe into the semiconductor sector. “We are taking a look at semiconductors and the whole electronics supply chain in the upcoming National Security Tariff Investigations,” he posted.
This came after a US Customs and Border Protection bulletin was posted Friday night with list of electronics products that had been excluded from the reciprocal geographically-based tariffs announced since April 2. Those tariffs, with the exception of those placed on China, have been down-rated to 10 percent for the duration of a 90-day pause. However, this has also been interrupted to mean chip tariffs are still at the “fentanyl” rate of 20 percent.
What about smartphones and computers?
When asked about tariffs on imported electronic equipment such as smartphones and computers, Trump told the reporters on Air Force One on Sunday: “Well, that’s going to be announced very soon and we’ll be discussing it but we’ll also talk to companies. You have to show a certain flexibility; nobody should be so rigid.”
Trump’s disclosures indicate that imports of semiconductors and electronic equipment could be taxed differently and could be treated differently with regard to company exceptions or exemptions – or not.
On Sunday US Commerce Secretary Howard Lutnick, told the ABC News television broadcast station that the electronics equipment excluded from the recent rounds of tariffs would be covered by “semiconductor sectoral tariffs” that will likely come in “a month or two.” He stressed that, unlike the geography-based reciprocal tariffs, these would not be open to negotiation.
Lutnick said that special-focus tariffs would be created to ensure he reshoring of strategic manufacturing. “We need our medicines, and we need our semiconductors and our electronics to be built in America,” Lutnick said.
Related links and articles:
President Trump says chip tariffs to start “very soon”
Trump vows to impose chip import tariffs of up to 100 percent
Intel, TSMC outline deal to form chipmaking venture, says report
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