FX.co ★ White House Calls 25% Semiconductor Tariffs “Phase One” Action

The U.S. Commerce Department has implemented a 25% tariff on select high-end semiconductors due to national security concerns, marking it as an initial measure to safeguard the sector. This announcement, made on Wednesday, may pave the way for additional measures depending on future negotiations with international governments and corporations, as per an unnamed White House representative cited by Reuters on Thursday. President Donald Trump has hinted at the possibility of a significantly higher 100% tariff on chips not manufactured within the United States, emphasizing the strategic importance of bolstering domestic semiconductor production. As part of this strategy, the President enacted a 25% tariff on specific artificial intelligence chips through a new national security directive issued by the White House on Wednesday. This move, under the authority of the Trade Expansion Act of 1962, targets a range of high-performance semiconductors and devices containing them, aiming to apply import duties. The initiative is a component of a wider agenda designed to encourage chipmakers to accelerate semiconductor production within the United States.