Trump Administration Considers Chip-Based Tariffs on Imported Electronics

Plan Targets Foreign Electronics

WASHINGTON, Sept 26 (Reuters) – The Trump administration is exploring tariffs on imported electronic devices based on the number of chips each device contains, sources familiar with the matter said. The initiative aims to encourage companies to move more manufacturing to the United States.

Tariff Details

Under the proposal, which has not been previously reported and may still change, the Commerce Department would set a tariff equal to a percentage of the estimated value of a product’s chip content.

Policy Objective

Officials view the measure as a way to strengthen domestic manufacturing and reduce reliance on foreign supply chains. By linking tariffs directly to chip content, the administration hopes to influence where technology companies produce critical components.