During a dinner with a dozen major United States tech leaders last week, President Donald Trump confirmed again that his administration plans to impose “fairly substantial” tariffs of up to 100% on semiconductor imports.
There is widespread, bipartisan agreement that domestic chip production is critical for national security, economic resilience, and reviving America’s ability to manufacture high-tech products. With China threatening Taiwan and seeking to control global supply chains, tariffs should be welcome news for overall efforts to increase onshore semiconductor production.
However, the Trump administration must be vigilant to prevent manufacturers from gaming the system. Recent comments from Commerce Secretary Howard Lutnick suggest companies could avoid the tariffs if they “commit” to building in America during Trump’s term. That standard risks granting a hall pass to companies that either do the bare minimum or make grand promises that never materialize, rendering the tariffs toothless.
