U.S. weighs broader semiconductor tariffs as AI hardware trade faces new pressure

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U.S. weighs semiconductor tariffs

Highlights

The Trump administration is evaluating broader tariffs on technology goods including semiconductors, with possible staggered rollout and scope changes in the coming months.
Proposed measures could see tariffs of about 100% on semiconductors and chips, while companies manufacturing domestically would be exempt, as reshoring remains a top priority.
With Chinese firms still accessing Nvidia AI chips despite export controls, new tariffs and legislation aim to tighten restrictions and reinforce domestic semiconductor investment.

Proposed tariff scope and rollout

As first reported by CNBC, citing Politico, the administration is examining duties on a wider set of technology goods made alongside semiconductors, citing eight people familiar with the matter. The report says the plan remains in an early phase and could change significantly over the coming months, with officials considering a staggered implementation.

The White House does not immediately respond to CNBC's request for comment, but tells Politico that reshoring semiconductor manufacturing remains a top priority for President Donald Trump. It says the administration's policies have already secured hundreds of billions of dollars of investment in the sector.

Trump says last year that he plans to unveil new tariffs on semiconductors and chips, although those measures do not materialize at that time. He also says then that tariffs of about 100% could apply to semiconductors and chips, while companies building domestically would face no charge.

Implications for AI hardware and China competition

Existing tariffs on Chinese semiconductors were introduced under former President Joe Biden's administration, and the latest proposal would add another layer of trade pressure across the AI hardware supply chain. In January, the Trump administration does impose a 25% tariff on certain AI chips.

The tariff discussion comes as Chinese firms reportedly continue to access Nvidia chips despite tight U.S. export restrictions. Industry watchers say access to advanced computing through overseas cloud providers is an important factor in Chinese AI models gaining capability.

U.S. legislation is also being discussed to close that loophole, but experts previously tell CNBC that hurdles remain before any fix can have a meaningful effect. That leaves tariffs, export controls and domestic manufacturing incentives at the center of Washington's semiconductor strategy.

Our earlier coverage on proposed U.S. semiconductor tariffs explained that the Trump administration was weighing duties that could extend beyond chips to a wider set of semiconductor-containing tech products, with a possible phased rollout. We also noted that officials were discussing a framework that would link tariff relief for foreign companies to their investment in U.S. semiconductor manufacturing, as part of a broader push to reshore production.

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