The Trump administration is considering sweeping new tariffs on semiconductors that could also cover a broad range of technology products containing computer chips, Politico reported Thursday.
One approach under discussion would apply duties not only to imported chips but also to goods made with them, including laptops, gaming consoles, and servers used in data centers, the report said, citing eight people familiar with the deliberations.
Commerce Secretary Howard Lutnick reportedly favors tying tariff relief for foreign companies to their investments in US semiconductor manufacturing, aiming to encourage more production on American soil.
Under the proposed system, companies would be permitted to import a certain volume of chips duty-free, with the allowance determined by how much production they pledge to establish in the US.
Officials are also considering a phase-in period as well as separate tariff rates and import quotas for individual countries, according to the report. The tariff rate and other key details have not yet been finalized, and the framework could be substantially revised in the coming weeks or months.
The proposal has raised concerns in the technology industry, which is already facing shortages of advanced semiconductors amid surging demand for artificial intelligence infrastructure.
Industry representatives have warned that broader tariffs could increase the cost of data center construction, slow US investment in AI infrastructure, and raise prices for servers, computers, televisions, and other electronic products.
The measures could also affect US chip designers such as Nvidia and Advanced Micro Devices, which rely on overseas manufacturers to produce their semiconductors.
White House spokesperson Kush Desai defended the administration's trade policy, saying reshoring semiconductor manufacturing is a "top priority" for President Donald Trump.
"The Trump administration remains focused on delivering more investments and economic relief for the American people while safeguarding our national security," Desai said.
In polls, the American public largely disapproves of higher tariffs, but Trump has pledged that his tariff policy will make the US, in his words, "rich as hell."
