Tariffs Target Chips in Tech to Boost U.S. Manufacturing

The Trump administration is reportedly contemplating imposing tariffs on foreign electronic devices determined by the number of chips they contain. This initiative aims to incentivize companies to localize their manufacturing processes within the United States.

Sources suggest that the Commerce Department might levy a tariff on imported products equivalent to a percentage of the chip value in each item. This strategy, although not officially publicized and still subject to change, indicates the administration's intention to affect a broad array of consumer items, potentially causing inflationary pressure as it promotes the U.S. manufacturing sector.

The White House emphasizes the importance of domestic production capability for semiconductor products, citing national and economic security as key drivers behind this multifaceted approach, which includes tariffs, tax incentives, deregulation, and energy policy adjustments.

(With inputs from agencies.)