Lutnick Confirms Trump Admin Is Working On Tariffs On Key Industry For The AI Boom

Commerce Secretary Howard Lutnick confirmed Wednesday that the Trump administration is developing a framework to impose tariffs on semiconductors, saying 'if you build here, you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world.' The tariffs could expand to products made with chips, such as laptops, according to a Politico report, and come as the administration imposed 50% tariffs on $20 billion of Canadian goods and announced plans to raise auto and steel tariffs to 50% by January 1, 2027.

Lutnick Confirms Trump Admin Is Working On Tariffs On Key Industry For The AI Boom "We will be successful in semiconductors. They're going to be built in America," Lutnick said. Commerce Secretary Howard Lutnick confirmed on Wednesday that the Trump administration https://www.ibtimes.com/topic/donald-trump is working on a framework to impose tariffs on semiconductors. "I think what you're going to see is targeted, thoughtful tariff policy that basically says if you build here, you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world," he said https://www.cnbc.com/2026/09/02/g20-innovation-ministerial-live-updates.html . "We will be successful in semiconductors. They're going to be built in America," Lutnick added, confirming a report from last week that anticipated the measure. Citing people familiar with the matter, Politico detailed https://www.politico.com/news/2026/08/27/data-centers-chips-tariffs-threat-01050957 last Thursday that one approach could see a large expansion of the products subjected to tariffs. They could target not just chips, but also products made with them like laptops. U.S. tech companies have expressed concern about the possibility, especially considering that the industry is already experiencing shortages of semiconductors as demand for them skyrockets. Some claimed that while expanding the production of chips in the U.S. is desirable, processes take years, potentially decades. Until then, they must rely on suppliers from Malaysia, South Korea and Taiwan, which produce over 90% of the global supply. The possibility comes as the Trump administration refloats the tariff policy. On Saturday, it imposed duties on Canada, amounting to 50% on some $20 billion worth of goods including dairy, wine, wood products, furniture, cement, ceramics, and other areas. Trump expanded the measure on Monday, saying in a social media post https://truthsocial.com/@realDonaldTrump/posts/117150758113256193 that "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%." Lutnick also addressed the trade war with Canada, saying Ottawa is to blame for the fallout. Speaking to CNBC, he said negotiators began "adding crazy ideas to the mix" hours before the deadline to reach a deal. "And I said to one of the ministers, 'Are you actually trying to blow this up?' And his answer to me was, 'I'm not allowed to say that,'" Lutnick claimed. "They blew it up for political reasons only," he added, noting that the U.S. may have also made requests at the last minute as well. © Copyright IBTimes 2026. All rights reserved.