The Trump administration is contemplating a second phase of tariffs on semiconductors that could extend beyond chips to impact consumer electronics, gaming consoles, and data-centre infrastructure, amid concerns over supply chain vulnerabilities and rising costs.
The Trump administration is weighing a second phase of semiconductor tariffs that could reach far beyond chips themselves and into the laptops, consoles and data-centre servers built with them, according to reports from Politico and Tom’s Hardware. The discussions also include the possible removal of exemptions introduced in January that have so far shielded consumer electronics, data centres, start-ups and research operations from the existing 25% duty.
The move would mark a sharper escalation than the first round of tariffs, which targeted a narrow set of advanced semiconductors, including Nvidia’s H200 and AMD’s MI325X. Under the current framework, those duties apply to the chips themselves, but not to many finished products that rely on them. A second phase would change that by extending the tariff burden down the supply chain, while also closing carve-outs that have limited the reach of the policy, the reports said.
That matters because the broader electronics market is already under strain from AI-driven memory shortages. Industry forecasts cited by ITPro suggest global semiconductor revenue could nearly double in 2026 to $1.6 trillion, with memory now accounting for a much larger share of the market than a year ago. In practice, that has fed through to higher prices for consumer hardware. Console sales in the US have weakened sharply, while laptop makers have already lifted prices across much of their ranges.
The policy debate also turns on the scale of US semiconductor capacity, which remains far below global leading-edge demand. Commerce Secretary Howard Lutnick is reported to favour a quota system that would tie tariff relief to investment in US manufacturing, but industry critics say that approach would not match current supply needs. With Taiwan still dominating advanced chip production and large-scale fab construction taking years, they argue the quotas would leave importers exposed long before domestic capacity could replace foreign supply.
Data-centre operators would also be vulnerable if the current exemption were withdrawn. Axios reported this week that AI infrastructure is consuming vast amounts of electricity and water, and that local opposition is growing as those costs filter through to utility bills. If tariffs were applied to server hardware as well as chips, the effect would be to add another layer of cost to an already expensive build-out. The administration has not announced a formal policy, and the framework under discussion could still change.
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