Trump Orders 25% Tariff on Foreign Semiconductors Not Used in U.S. Production

A new executive order imposes a 25 percent tariff on imported semiconductors that are not used domestically, targeting transshipped chips as part of a national security trade investigation.

By yourNEWS Media Newsroom

President Donald Trump on Jan. 14 signed an executive order imposing a 25 percent tariff on semiconductors imported into the United States that are not used for domestic production, a move the White House said is intended to strengthen national security and protect critical technology supply chains.

The tariff action stems from a Section 232 trade investigation into semiconductor imports, which allows the administration to restrict trade on national security grounds. Under the order, imported chips that are not used within the United States to build domestic artificial intelligence systems or computing infrastructure will be subject to the new tariff.

White House officials said the measure is designed to discourage the United States from being used as a transit point for foreign semiconductor shipments destined for other countries. Semiconductors that enter the United States and are then exported elsewhere will not be exempt from the tariff.

“The chips that are transshipped through the United States to other foreign countries would be subject to that 25 percent tariff,” White House staff secretary Will Scharf told reporters during a meeting in the Oval Office.

According to the White House, the administration views semiconductor manufacturing and deployment as a core national security issue, particularly as artificial intelligence and advanced computing become increasingly central to military, economic, and technological competitiveness.

In addition to the semiconductor order, Trump signed a separate executive action establishing a formal process aimed at strengthening U.S. access to critical minerals and related products. The initiative is intended to secure international supply chains essential for advanced manufacturing, defense technologies, and energy systems.

The White House said both orders are part of a broader strategy to reduce reliance on foreign supply chains for technologies and materials considered vital to U.S. national and economic security.