United States imposes immediate 25% tariff on certain advanced computing chips
President Trump signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962
The White House today announced that President Trump signed a proclamation—which invokes authority under Section 232 of the Trade Expansion Act of 1962 to address national security concerns related to imports of semiconductors, semiconductor manufacturing equipment, and their derivative products—imposing an immediate 25% tariff on certain advanced computing chips, with exceptions for chips supporting the U.S. technology supply chain and domestic manufacturing capacity.
In particular, the 25% tariff does not apply to chips used in the United States for:
- Data centers
- Repairs or replacements
- Research and development involving these chips
- Startups
- Non-data center consumer applications
- Non-data center civil industrial applications
- Public sector applications
The tariff will also not apply to chips that the Secretary of Commerce determines contribute to the strengthening of the United States technology supply chain or domestic manufacturing capacity for derivatives of semiconductors.
According to the White House release, President Trump may impose broader tariffs on imports of semiconductors and their derivative products, as well as an accompanying tariff offset program to incentivize domestic manufacturing as previously announced.
The White House today also announced that President Trump signed a proclamation under Section 232 of the Trade Expansion Act of 1962, directing the U.S. Secretary of Commerce and U.S. Trade Representative to negotiate agreements with trading partners to address national security concerns related to imports of processed critical minerals and their derivative products (PCMDPs). According to the White House release, the Trump Administration aims to promote price floors for trade in PCMDPs and may take further action if agreements are not reached within 180 days.