SUPPORTING AMERICA’S SEMICONDUCTOR INDUSTRY: In a decisive move today, President Donald J. Trump enacted a Proclamation utilizing Section 232 of the Trade Expansion Act of 1962 to tackle pressing national security issues related to the importation of semiconductors, their manufacturing equipment, and related products.
- The President has tasked the U.S. Secretary of Commerce and the U.S. Trade Representative with the joint responsibility of negotiating agreements—or continuing ongoing negotiations—to mitigate the national security risks posed by semiconductor imports from any nation.
- A 25% tariff has been introduced on select advanced computing chips, notably the NVIDIA H200 and AMD MI325X. However, chips that facilitate the expansion of the U.S. technology supply chain and bolster domestic manufacturing of semiconductor derivatives are exempted from this tariff.
- Looking ahead, President Trump may consider broader tariffs on semiconductor imports and their derivatives, along with a tariff offset program aimed at incentivizing domestic production, as previously indicated.
ADDRESSING THE THREAT TO NATIONAL SECURITY: The President is acutely aware that revitalizing domestic semiconductor production capacity is crucial for both economic stability and national security.
- This initiative follows a comprehensive Section 232 investigation by the Secretary of Commerce, which concluded that the current levels of semiconductor imports jeopardize national security.
- The U.S. production capacity for semiconductors and relevant manufacturing equipment, such as advanced lithography and etching tools, is currently inadequate to satisfy domestic demand, leading to a reliance on foreign sources.
- Semiconductors are integral to the economic, industrial, and military prowess of the United States. Any disruption in these import-dependent supply chains could significantly compromise the nation’s industrial and military capabilities.
- Today’s measures aim to counter these national security threats by promoting domestic semiconductor production and diminishing reliance on foreign supply chains.
BUILDING ON A RECORD OF SECURING CRITICAL INDUSTRIES: This Proclamation is a continuation of the Trump Administration’s previous efforts to prioritize U.S. trade and industrial policies that favor American interests.
- From his first day in office, President Trump has championed an America First Trade Policy designed to rejuvenate the U.S. economy.
- Repeatedly, he has employed Section 232 tariffs as a safeguard against threats to national security and to bolster manufacturing sectors deemed vital for national and economic safety, including industries such as steel, aluminum, copper, automotive, and lumber.
- Throughout his first year back in office, President Trump has unveiled numerous landmark international trade agreements aimed at protecting domestic production while simultaneously enhancing market access for American partners.
