The Trump administration is moving to expand tariffs on imported semiconductors. Commerce Secretary Howard Lutnick confirmed plans for additional tariffs on September 2, 2026. The broader strategy operates under Section 232 of the Trade Expansion Act of 1962, the same national security provision the administration has used to justify tariffs on steel, aluminum, and a growing list of technology goods.
What has happened so far
A presidential proclamation dated January 14, 2026 kicked things off with a 25% tariff on select advanced computing chips that were not already supporting US supply chains.
The new tariffs Lutnick flagged look broader in scope. Potential targets include servers, laptops, and gaming hardware, categories that were largely sheltered under Phase 1. Fewer exemptions are reportedly on the table this time.
There is also a separate but related move on polysilicon. A proclamation from August 6, 2026 established a 15% tariff on polysilicon and its derivatives, with minimum price floors taking effect from December 4, 2026.
Companies that commit to building or expanding manufacturing operations in the United States can avoid the duties. Since tariffs began rolling out, US investments in semiconductor manufacturing have reportedly reached hundreds of billions of dollars in commitments.
Why this is harder than it sounds
Semiconductor manufacturing is not a business you can spin up quickly. A leading-edge chip fabrication plant takes roughly four to five years to build, costs tens of billions of dollars, and requires a highly specialized workforce that does not exist at scale in the United States today.
Taiwan, South Korea, and the Netherlands collectively produce the overwhelming majority of the world’s advanced chips. Taiwan Semiconductor Manufacturing Company alone produces chips for Apple, Nvidia, AMD, and dozens of other US companies. Tariffs on imported chips effectively tax those companies’ own products the moment those products cross the border.
China is the dominant global producer of polysilicon, and a 15% tariff with minimum price floors is a direct pressure point on Chinese supply. That dynamic matters for solar panels as much as it matters for chips, since polysilicon is used in both industries.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
