Trump Administration Plans Chip-Based Tariff System on Imported Electronics to Boost US Manufacturing

The Trump administration is exploring a new tariff structure on imported electronic devices that would be calculated based on the number of semiconductor chips contained in each product, according to three sources with knowledge of the matter.

Washington:

As part of efforts to encourage companies to relocate manufacturing operations to the United States, the Trump administration is developing a plan to impose tariffs on foreign electronic devices proportional to their semiconductor content.

This previously unreported initiative, which remains subject to revision, would involve the Commerce Department levying tariffs on imported products equal to a percentage of the estimated value of chips contained within each item.

Should this proposal be enacted, it would demonstrate the administration's willingness to target a broad spectrum of consumer electronics and household items, from electronic toothbrushes to computers. Such tariffs could potentially lead to increased inflation while advancing the administration's goal of expanding domestic manufacturing capacity.

When contacted, the Commerce Department did not provide an immediate response to requests for comment on the matter.

White House spokesperson Kush Desai, when asked about the details of the plan, stated: "America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security. The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance."

This report has not undergone editing by NDTV staff and is automatically generated from syndicated content.