Will the US Unveil Semiconductor Tariffs Next Week?
Click to start listening
Synopsis
US President Donald Trump is set to announce tariffs on semiconductor imports as early as next week, a move closely watched by South Korean tech giants. This decision is part of a broader strategy to bolster domestic production and secure national interests amid ongoing geopolitical tensions.
Key Takeaways
- Trump to announce semiconductor tariffs next week.
- South Korean companies Samsung and SK hynix are monitoring the situation.
- Initial tariffs will be at a lower rate, increasing significantly over time.
- Section 232 of the Trade Expansion Act invoked for national security.
- High-stakes summit with Putin concluded without a ceasefire announcement.
Washington, Aug 16 (NationPress) US President Donald Trump announced that his administration plans to introduce tariffs on semiconductor imports as soon as next week. South Korean tech giants Samsung Electronics and SK hynix are closely monitoring these developments regarding tariff policies.
During a press meeting aboard Air Force One while traveling to Alaska for discussions with Russian President Vladimir Putin—a crucial meeting aimed at negotiating an end to the ongoing conflict in Ukraine—Trump made his remarks, according to reports from Yonhap news agency.
"We will be announcing rates for chips and semiconductors sometime next week, or possibly the week after," Trump stated, as per a White House press pool report.
He did not specify what the exact tariff would be, but indicated it would rise from a lower rate to a very high rate.
"I will start with a lower rate to allow companies to establish themselves here, but it will escalate to a very high rate after a set period," he elaborated.
"If they fail to manufacture in the U.S., they will incur a significantly high tariff."
Just last week, Trump mentioned that his administration is considering a tariff of around 100 percent on chips to bolster semiconductor production within the U.S.
To implement these tariffs, Trump has invoked Section 232 of the Trade Expansion Act of 1962, which grants the president authority to modify imports when they pose a threat to national security.
Meanwhile, the summit between Trump and Putin concluded without any announcements regarding a ceasefire in the prolonged conflict in Ukraine. However, both leaders described their discussions as extremely productive and constructive.
After their meeting in Anchorage, Trump remarked that both sides found agreement on many points, although he emphasized, "There is no deal until there is a deal."
This was the first meeting between Trump and Putin in six years, as Washington intensifies diplomatic efforts to halt the deadly conflict that has persisted since Russia's full-scale invasion of Ukraine in February 2022.
Point of View
Our focus remains on ensuring the nation’s interests are prioritized. The proposed semiconductor tariffs aim to boost domestic production and safeguard national security, reflecting the administration's commitment to a robust tech industry.
NationPress
19/08/2025
Frequently Asked Questions
What are the expected tariffs on semiconductor imports?
President Trump has indicated that tariffs will start at a lower rate and escalate to a very high rate if companies do not establish production in the U.S.
Why is the US imposing tariffs on semiconductors?
The tariffs aim to strengthen domestic semiconductor production and protect national security interests.
What law is Trump using to impose these tariffs?
Trump is invoking Section 232 of the Trade Expansion Act of 1962, which allows the president to adjust imports that threaten national security.
