trump weighs semiconductor tariffs amid trade strategy shift

2025-04-14 general

Washington, Monday, 14 April 2025.
the trump administration is contemplating new tariffs on semiconductors. this follows a recent decision to lift reciprocal tariffs on some electronics. the move signals a potential shift in trade strategy. it comes as the white house exempted smartphones and computers. the contemplated tariffs could target chinese technology. semiconductors are a key component in defense equipment. there are concerns about chinese input in us weapons systems. new tariffs may be announced soon.

Tariff timeline and scope

President Trump is expected to announce tariffs on semiconductor chips within the next week [4]. This follows the administration’s recent exemption of smartphones and computers from import levies imposed on China [4]. Commerce Secretary Howard Lutnick clarified that this relief is temporary [4]. Trump himself denied any tariff exception. He stated the administration is reviewing semiconductors and the entire electronics supply chain under a National Security Tariff Investigation [4]. The tariffs are expected in a month or two [1][2]. These actions suggest a complex and evolving trade strategy [3].

National security concerns

The administration is launching an investigation into semiconductors under Section 232 of the Trade Expansion Act of 1962 [1]. Kevin Hassett, Director of the National Economic Council, emphasized semiconductors’ importance in defense equipment [1][2]. He expressed concerns about the amount of Chinese input in U.S. weapons systems [1][2]. Trump stated his desire to have chips and semiconductors manufactured in the U.S. [4]. These concerns underscore the national security rationale behind potential tariffs [1].

Market and industry reaction

The recent tariff exemptions provided a temporary reprieve for tech manufacturers like Apple and Nvidia [6]. However, the potential for new semiconductor tariffs has created uncertainty [3]. Dan Ives, an analyst at Wedbush Securities, noted the confusion and disruption caused by the White House’s communications [3]. He said this makes it difficult for companies to plan their supply chains [3]. These rapid policy shifts have rattled investors. They also complicate strategic planning for businesses reliant on global supply chains [3].

Economic implications and apple’s exposure

New tariffs on chip imports could increase production costs for U.S. companies [3]. This could reduce profits or force companies to raise prices for consumers [3]. For Apple, the U.S.-China trade tensions have been particularly challenging [3]. Wedbush Securities estimates new iPhones could increase from $1599 to $2300 if a 54% tariff is applied [5]. The ongoing trade conflict has caused volatility in global financial markets [3]. Consumers have even rushed to buy iPhones, anticipating price increases due to the trade war [3].

Bronnen

Semiconductors Trade Tariffs