"25% Semiconductor Tariff Is First Phase...Further Announcements Possible"

"Further Announcements Possible Depending on Negotiations with Countries and Companies"

The Donald Trump administration’s recently announced semiconductor tariffs represent a "first phase" measure, and broader semiconductor tariffs may be announced in the future, Reuters reported on January 15 (local time), citing an anonymous White House official.

Donald Trump, President of the United States. Photo by Reuters Yonhap News

According to Reuters, the anonymous White House official stated that the 25% semiconductor tariff imposed by the U.S. Department of Commerce under Section 232 of the Trade Expansion Act was the "first phase," and that further announcements could be made depending on ongoing negotiations with various countries and companies. The official also noted that President Trump, who last year expressed his commitment to rebuilding the U.S. domestic semiconductor production infrastructure, had mentioned the possibility of imposing a "100% tariff" on imported semiconductors not produced in the United States, Reuters reported.

The previous day, President Trump signed a proclamation imposing a 25% tariff on semiconductors imported into the United States and then re-exported to other countries. This measure effectively imposes an "export tax" on products such as the "H200" from U.S. artificial intelligence (AI) semiconductor company Nvidia, which are produced by TSMC in Taiwan, imported into the United States, and then re-exported to China.

At the same time, the White House stated in a fact sheet that "President Trump may soon impose broader tariffs on imports of semiconductors and their derivatives to encourage domestic manufacturing in the United States, and may introduce a corresponding tariff offset program." The tariff offset program would exempt or apply preferential tariffs to companies that invest in specific areas of U.S. semiconductor production and supply chains.

Ultimately, the White House official’s reiteration of the previous day’s announcement, along with references to "negotiations with countries and companies," appears to suggest the possibility of tariff exemptions or preferential treatment for companies investing in domestic semiconductor manufacturing facilities in the United States.