Trump Proposes 100% Tariffs on Chip Imports Unless Domestic Production Matches

President Donald TRUMP is escalating efforts to reshore semiconductor manufacturing, threatening tariffs of up to 100% on imported chips unless companies achieve production parity in the U.S. Commerce Secretary Howard Lutnick framed the proposal as an economic security measure during discussions with industry leaders.

The plan would offer tariff exemptions to firms committing to domestic production, with credits for planned output allowing interim imports. WHITE House spokesperson Kush Desai emphasized national security concerns but cautioned against premature assumptions before official policy announcements.

Industry analysts question the feasibility of 1:1 production matching, even as the proposal has already spurred hundreds of billions in announced U.S. fab investments. The MOVE continues Trump's broader decoupling strategy from foreign semiconductor supply chains.