The White Home stated on Jan. 14 that President Donald Trump could quickly increase tariffs on imports of semiconductors and their spinoff merchandise, a transfer drawing scrutiny for its potential impression on South Korean know-how giants Samsung Electronics and SK hynix, in addition to the nation’s shopper electronics producers.
In keeping with the White Home, President Trump signed a proclamation imposing a 25% tariff on semiconductors which might be imported into the USA and subsequently re-exported to 3rd international locations, reminiscent of Nvidia’s H200 chips. In December final 12 months, Trump stated he would permit exports of the H200 to China, whereas requiring that 25% of the gross sales proceeds be paid to the USA. The tariff is designed to reclaim a part of Nvidia’s China-related income as U.S. authorities income by levying an obligation on H200 chips shipped from Taiwan to China through the USA.
The transfer follows a report submitted on Dec. 22 final 12 months by the U.S. Division of Commerce beneath Part 232 of the Commerce Enlargement Act, which assessed the impression of semiconductor imports on U.S. nationwide safety. The commerce secretary reported that semiconductors, semiconductor manufacturing gear, and spinoff merchandise are being imported beneath situations and volumes that might pose a threat to nationwide safety. Primarily based on the findings, President Trump specified within the proclamation {that a} 25% tariff would apply to sure imported semiconductors that don’t contribute to strengthening the U.S. know-how provide chain or home manufacturing capability for spinoff merchandise. The White Home explicitly named Nvidia’s H200 and AMD’s MI325X as merchandise topic to the tariff.
In an accompanying truth sheet, the White Home acknowledged that President Trump could impose broader tariffs on semiconductor and spinoff product imports within the close to future to encourage home manufacturing, whereas introducing a corresponding tariff offset program. The administration stated the commerce secretary really useful considerably larger tariffs throughout a wider vary of semiconductor imports and proposed a tariff offset program that will grant preferential remedy to firms investing in U.S. semiconductor manufacturing and particular provide chains.
Final summer time, the Trump administration stated it may impose tariffs of as much as 100% on imported semiconductors, whereas exempting firms that construct semiconductor manufacturing services in the USA. Samsung Electronics and SK hynix are at present establishing services in the USA, elevating the likelihood that they might qualify for exemptions, though analysts stated the ultimate impression will rely on the small print of the implementation guidelines.
