The Trump administration is considering a second wave of semiconductor tariffs that would stretch beyond raw chips and hit everyday electronics. New trade rules could soon cover imported laptops, gaming consoles, and data center servers. According to recent reports, Commerce Secretary Howard Lutnick is pushing a plan that limits duty-free chip imports based on how much manufacturing a company pledges to bring stateside.
Officials consider scrapping previous exemptions for data centers and startups
Back in January, the government placed a 25 percent tax on specific advanced hardware. That initial order included carve-outs for data centers, consumer devices, research facilities, and startups. Now, sources say the Commerce Department might toss those exemptions out the window. If this plan moves forward, companies will face strict limits on the number of tariff-free chips they can bring in.
The proposed system ties import quotas directly to a company’s current domestic factory capacity. Taiwan currently builds over 90 percent of the world’s most advanced processors. Tech giants argue that a quota based on domestic factories simply cannot keep up with massive hardware purchases. Tech leaders at Google and other companies heavily depend on these advanced foreign chips to power their daily operations.
Don’t miss the best of The Mac Observer
Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.
A representative for the Computer and Communications Industry Association warned about the negative effects. This group, which includes major players like Meta, stated that removing the data center exemption would put billions of dollars in infrastructure investment at serious risk.
Tech industry pushes back as domestic manufacturing takes years
Trade groups have spent the summer meeting with Lutnick and other officials, but the discussions are reportedly not going in their favor. Large retail platforms like Amazon could also feel the pinch if consumer electronics face sudden price hikes. Industry leaders point out that building a brand new semiconductor plant in the US takes at least five years. This timeline is much longer than any adjustment period the government has offered in past trade disputes.
Even with massive financial commitments, like TSMC building a new plant in Arizona, the domestic supply gap remains huge. Only a fraction of the most advanced chip capacity will actually be built in the states.
The White House continues to defend the approach, stating that bringing chip manufacturing back home is a top priority for the president. Time will tell if the tech industry can convince policymakers to soften the blow or if buyers will ultimately absorb the cost of these new trade barriers.
Discussion