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Industry Awaits US Chip Tariff Revelation

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April 14, 2025

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President Trump has announced that this week he will reveal the tariff rate for chips and related semiconductor products imported into the US, with the tariffs expected to take effect in the "not-distant" future. There are estimates suggesting that the tariffs could be implemented within a month or two, with previous indications from Trump pointing to a potential tariff range of 25 to 100 percent of the import price.

It remains uncertain whether the US administration under President Trump is willing to consider company-specific tariff exceptions within the semiconductor sector. One potential candidate for special treatment could be the Taiwanese foundry TSMC, a leading chip manufacturer globally, which has shown a significant commitment to expanding its chip manufacturing capabilities in the US.

President Trump shared these latest details while speaking to reporters aboard Air Force One on his return flight to Washington DC after a weekend of golfing in West Palm Beach, Florida. Earlier in the day, Trump had announced on his Truth social media channel that a national security trade probe into the semiconductor sector would be conducted as part of the upcoming National Security Tariff Investigations.

Following a bulletin from US Customs and Border Protection on Friday night listing electronics products excluded from the geographically-based tariffs announced since April 2, it was clarified that chip tariffs remain at the "fentanyl" rate of 20 percent. The exceptions have been downgraded to 10 percent for a 90-day pause, with the exception of tariffs on China.

Regarding tariffs on imported electronic devices like smartphones and computers, Trump mentioned to reporters on Air Force One that an announcement would be made soon. He emphasized the importance of flexibility and potential discussions with companies, hinting at the possibility of varying tax treatments for semiconductors and electronic equipment, including considerations for company exceptions or exemptions.

US Commerce Secretary Howard Lutnick, speaking on ABC News, highlighted that electronics equipment previously excluded from recent tariff rounds would likely be subject to "semiconductor sectoral tariffs" in the coming months. Lutnick emphasized that these tariffs would not be up for negotiation and would focus on reshoring strategic manufacturing, particularly in critical sectors like medicines, semiconductors, and electronics.

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