U.S. prepares new semiconductor tariffs targeting foreign manufacturers to boost domestic chip production

Commerce Secretary Howard Lutnick signals the Biden administration’s readiness to implement a second wave of semiconductor tariffs aimed at incentivising US-based chip manufacturing amidst rising global electronics costs.

Commerce Secretary Howard Lutnick has given the clearest public signal yet that the Trump administration is preparing a second wave of semiconductor tariffs, with a simple formula at its core: firms that manufacture chips in the United States will be spared, while those that do not will face duties to access the American market. Speaking at the G20 Innovation Ministerial in Chapel Hill, North Carolina, he said the policy would follow the same broad logic as the administration’s pharmaceutical approach, but he stopped short of naming tariff rates, product lists or a start date.

The announcement marks a shift from speculation to policy direction. Reuters and CNBC both reported that Lutnick confirmed the administration’s intent to move ahead with what officials are describing as Phase Two, turning an internal debate into an on-record commitment from the Cabinet secretary overseeing trade policy. Bloomberg reported that he framed the plan as an incentive for domestic investment rather than a blanket penalty on imports, saying the government wanted chipmakers to build in America if they wanted tariff relief.

The timing matters because the administration has already moved on an earlier, narrower round of semiconductor duties, and Phase Two appears designed to widen the pressure. The first phase focused on a limited set of advanced AI accelerators, while the new approach could reach further into products such as servers, laptops and gaming hardware, according to the reporting cited by TechTimes and other outlets. Yet key details remain unsettled, including whether any exemptions from the first phase will survive and how quickly the new tariffs would take effect.

The policy also lands in a market already under strain from higher memory prices and rising electronics costs. That makes the likely effect less about abstract trade policy and more about the price of hardware for companies and consumers. For now, the clearest point is that Washington is pushing harder for domestic semiconductor production, even as the practical limits of fab construction, equipment supply and supply-chain dependence mean any shift will take time.