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Presidential·Proclamation

Trump Moves to Impose 25% Tariff on Imported Semiconductors, Citing National Security Risk

ADJUSTING IMPORTS OF SEMICONDUCTORS, SEMICONDUCTOR MANUFACTURING EQUIPMENT, AND THEIR DERIVATIVE PRODUCTS INTO THE UNITED STATES

2 months ago·View on White House

Key Points

  • President Donald J. Trump is placing a 25% tax on certain advanced computer chips imported from other countries starting January 15, 2026. This action is designed to encourage companies to build more factories in the U.S. and reduce the country's reliance on foreign technology.

    From policy text

    “imports of Covered Products will be subject to a 25 percent ad valorem duty rate. This tariff shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on January 15, 2026”
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  • A Department of Commerce investigation found that the U.S. currently makes only 10% of the chips it needs, despite using 25% of the world's supply. Officials say this creates a national security risk because these chips are vital for everything from military missiles and radar to the nation's power grid and hospitals.

    From policy text

    “The United States consumes roughly one quarter of the world’s semiconductors. The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains.”
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  • The new tax includes several exceptions to help keep costs down for regular people and businesses. It will not apply to chips used in everyday consumer electronics, research and development, new startup companies, or U.S.-based data centers.

    From policy text

    “The duty rate described in this clause shall not apply to imports of those Covered Products for use in United States data centers, for repairs or replacements performed in the United States, for research and development in the United States, for use by startups, for non-data center consumer applications in the United States, for use in non-data center civil industrial applications in the United States, for use in United States public sector applications”
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  • Government officials will now begin 90 days of negotiations with other countries to try and improve trade deals. If these talks are not successful, the President may decide to add even more taxes to a wider range of computer parts and manufacturing equipment later this year.

    From policy text

    “Depending on the status or resolution of such negotiations, I may consider imposing significant tariffs on imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, as well as an accompanying tariff offset program to incentivize domestic manufacturing.”
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Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

What Happens Next

Projected impacts based on AI analysis

Around mid-April 2026

Commerce Secretary and Trade Representative provide 90-day negotiation update to the President

After 90 days of trade talks with foreign countries, the administration will decide whether to impose broader tariffs on all semiconductors and chip-making equipment. If negotiations fail, much wider tariffs could follow, potentially affecting consumer electronics prices.

2026-07-01

Commerce Secretary provides data center semiconductor market update by July 1, 2026

This review could lead the President to expand the tariff to cover chips used in data centers — currently exempt. If that happens, cloud computing costs could rise for businesses and consumers who use services like streaming, AI tools, and online storage.

Source Information

Signed By

Document Type

Presidential Proclamation

Official Title

ADJUSTING IMPORTS OF SEMICONDUCTORS, SEMICONDUCTOR MANUFACTURING EQUIPMENT, AND THEIR DERIVATIVE PRODUCTS INTO THE UNITED STATES

Analysis generated by AI. Always verify with official sources.