WASHINGTON, DC — December 26, 2025 —
The Trump administration is actively considering a novel tariff structure on imported electronic devices, calculated as a percentage of their estimated semiconductor chip value, according to sources familiar with the discussions.
This approach, aimed at reducing reliance on foreign semiconductors, could significantly increase costs for a wide range of consumer products—from electric toothbrushes and smartphones to laptops and appliances—potentially passing higher prices onto American buyers.
Preliminary figures under review include a 25% rate on chip-related content for most imports, with lower 15% rates potentially applied to electronics from allies like Japan and the European Union. The plan remains fluid and subject to change.
The proposal builds on earlier administration statements favoring high tariffs—up to 100%—on imported semiconductors themselves, with exemptions for companies committing to or expanding US-based manufacturing. Major foreign chipmakers like Taiwan’s TSMC and South Korea’s Samsung have already announced significant US investments, positioning them for potential relief.
Commerce Department officials are also exploring exemptions for chipmaking equipment to avoid undermining domestic production goals.
The strategy aligns with broader efforts to reshore critical manufacturing, enhance national security, and address trade imbalances. However, economists warn it could fuel inflation and disrupt global supply chains already strained by ongoing trade tensions.
No final decisions or implementation timelines have been announced, and the administration continues internal deliberations amid input from industry stakeholders.
