Key Points
- The Trump administration will announce the results of its national security probe into semiconductor imports in two weeks.
- President Trump is hinting that new, higher tariffs on imported semiconductors, also known as chips, are likely to be implemented.
- The investigation uses Section 232 of the Trade Expansion Act, the same law used for steel and auto tariffs.
- The threat of these tariffs was a major reason the EU negotiated a new, broader trade deal with the U.S.
The Trump administration will announce the results of its national security investigation into semiconductor imports in two weeks, Commerce Secretary Howard Lutnick said on Sunday. The announcement could clear the way for new tariffs, and President Donald Trump is already suggesting they are on the horizon.
Lutnick said the investigation was a “key reason” why the European Union was eager to negotiate a broader trade agreement with the U.S. President Trump also hinted at this, saying that European Commission President Ursula von der Leyen had avoided the pending chip tariffs “in a much better way” by striking a new deal that includes 15% tariffs on most EU imports.
The administration launched the probe in April under Section 232 of the Trade Expansion Act, which allows the president to impose tariffs if imports are deemed a threat to national security.
Trump said the threat of new tariffs is already working, prompting companies from Taiwan and other countries to plan new chip manufacturing plants in the United States to avoid being affected.
This is the same law the administration used to justify tariffs on steel, aluminum, and the auto industry. The move is part of President Trump’s aggressive global trade strategy, which has led to a series of tariffs being placed on major trading partners.
The previous Biden administration had also tried to boost U.S. chip production. Still, it used grants and incentives through the CHIPS Act rather than tariffs.
