The U.S. Commerce Department’s decision to impose a 25% national security tariff on selected high-end semiconductor imports marks an initial step in a broader strategy to shield and expand the domestic chip industry, a senior administration official said on Thursday.
The official, speaking on condition of anonymity, described the measure as a “phase one” action, signalling that further policy announcements could follow depending on negotiations with allied governments and major semiconductor companies. The tariff, unveiled on Wednesday, targets advanced chips viewed as critical to economic and defence security.
President Donald Trump has repeatedly argued that the United States must reduce reliance on foreign-made semiconductors and rebuild manufacturing capacity at home. In previous remarks, he warned that chips produced outside the United States could face tariffs as high as 100% if companies fail to shift production domestically.
The White House official said the administration is using tariffs alongside incentives and negotiations to pressure firms to invest in U.S.-based fabrication, while maintaining room for diplomatic engagement with partners. The White House has framed the approach as essential to long-term supply chain resilience.
