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

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

Reuters reported on January 15 (local time), citing an anonymous White House official, that the semiconductor tariffs announced by the Donald Trump administration the previous day are a "first phase" measure and that broader semiconductor tariffs may be announced in the future.

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 the previous day was a "first phase." The official added that further announcements could be made depending on ongoing negotiations with various countries and companies. Reuters also reported that the official mentioned President Trump had previously expressed his determination to rebuild the domestic semiconductor production infrastructure and had indicated that a "100% tariff" could be imposed on imported semiconductors not produced in the United States.

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 effectively amounts to an "export tax" on products such as the "H200" from American artificial intelligence (AI) semiconductor company Nvidia, which are produced by TSMC in Taiwan, imported into the U.S., and then re-exported to China.

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

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