President Donald Trump plans to set sector-specific tariffs on semiconductor imports next week, he told reporters on Air Force One Friday.
Although Trump did not provide details about the specific duty rate he plans to install, he said he was “going to have a rate that is going to be lower at the beginning” in an effort to push semiconductor manufacturers to shift production to the U.S.
“Then that gives them a chance to come in and build and very high after a certain period of time,” Trump told reporters prior to traveling for a summit with Russia President Vladimir Putin in Alaska. “And if they don’t build here, they have to pay a very high tariff, which doesn’t work, so they’ll come build.”
Earlier this month, Trump said he would implement a tariff of „approximately 100%” on semiconductors. The White House is conducting a Section 232 investigation into the sector to determine the impact of semiconductor imports on national security and the domestic supply chain.
The Section 232 probe is one of several in progress from the Trump administration, with others reviewing pharmaceuticals, critical minerals, commercial aircraft and jet engines, and medium- and heavy-duty trucks and parts. Previous Section 232 investigations have resulted in tariffs on steel, aluminum and copper imports.
