The Trump Administration Is Reportedly Considering New Tariffs On Semiconductors Despite Warnings From Tech Companies

The Trump administration is considering new tariffs on semiconductors and products made with them, despite warnings from U.S. tech companies that such a move could hamper American hopes of leading the AI race, according to a Politico report. Commerce Secretary Howard Lutnick favors an approach granting relief to foreign companies that invest in U.S. chip manufacturing, while the industry faces shortages and relies on suppliers from Malaysia, South Korea, and Taiwan, which produce over 90% of the global supply. The consideration follows recent tariff actions, including a 50% duty on $20 billion of Canadian goods and a planned increase to 50% on cars, trucks, and parts by January 1, 2027.

The Trump Administration Is Reportedly Considering New Tariffs On Semiconductors Despite Warnings From Tech Companies Such a decision, companies warned, could hamper U.S. hopes of leading the AI race. The Trump https://www.ibtimes.com/topic/donald-trump administration is considering a new round of tariffs on semiconductors despite warnings from tech companies, according to a new report. Citing people familiar with the matter, Politico detailed https://www.politico.com/news/2026/08/27/data-centers-chips-tariffs-threat-01050957 on 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. However, Commerce Secretary Howard Lutnick is favoring one that would grant relief to foreign companies that invest in U.S. chip https://www.ibtimes.com/topic/us manufacturing to increase domestic production. 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%." Canadian Prime Minister Mark Carney promised to retaliate against U.S. goods, saying the country would target sectors such as steel, dairy, agricultural equipment, paper and electronics. The retaliatory tariffs would likely come sometime in September. He claimed that the country will retaliate with "dollar for dollar" tariffs against Washington. Earlier this year, much of Trump's original tariff policy was undone by the U.S. Supreme Court. In that instance, Trump had used the 1977 International Emergency Economic Powers Act IEEPA to implement sweeping tariffs unilaterally. In ruling against Trump, the Supreme Court wrote https://www.supremecourt.gov/opinions/25pdf/24-1287 new 3135.pdf that the president had not identified "clear congressional authorization" to issue tariffs. It noted that the IEEPA "contains no reference to tariffs or duties." The court defeat meant the U.S. government had to refund tens of billions of dollars to companies because the tax was illegal. © Copyright IBTimes 2026. All rights reserved.