President Donald Trump is preparing a new tariff plan that would force chipmakers to match US semiconductor production with the volume imported from abroad — or pay the price. The strategy aims to slash America’s reliance on foreign suppliers.
According to The Wall Street Journal (WSJ), the administration is weighing rules that would require a one-to-one balance of domestic and overseas chips. The proposal targets tech giants deeply tied to global supply chains and could prove, in officials’ words, “a taller order” to fulfill.
Tariff hammer targets gaps in US chip production
Companies that fall short of Washington’s production targets could face tariffs imposed directly on their imports, a penalty designed to pressure both buyers and chipmakers. The threat is intended to shift procurement toward US-made supplies, The Wall Street Journal reports.
Uncertainty surrounds how the rules would apply once chips are built into larger products. Many semiconductors made in the US are sent abroad for assembly and then shipped back inside finished electronics, making it unclear how such goods would be measured for tariff purposes.
Heavy reliance abroad seen as national and economic security threat
US officials have long warned that America’s dependence on foreign-made semiconductors leaves the economy and national defense exposed. Much of the world’s advanced chip production is concentrated in Taiwan, a hub seen as vulnerable to Chinese military pressure or natural disasters.
Chips are embedded in nearly every modern product, from smartphones and cars to industrial equipment and weapons systems. A sudden disruption in supply could ripple across industries, shutting factories and stalling critical technology.
The administration argues that bringing more manufacturing onshore is necessary to safeguard both economic stability and national security.
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Tech giants face costly adjustments to global chip supply chains
According to the WSJ, the plan would hit hardest at companies like Apple and Dell, which depend on parts sourced and assembled across multiple countries. To comply, the companies would need to trace the origins of each chip embedded in their products and match that volume with the domestic supply.
By contrast, firms ramping up domestic capacity, such as TSMC, Micron Technology, and GlobalFoundries, could gain leverage. The companies’ US investments position them to offer buyers a safer route to avoid tariffs.
Industry executives caution that realigning chip supply chains is a slow and expensive process. American-made chips cost more than imports, and certain specialized components cannot be easily manufactured locally, raising doubts over how quickly companies can adapt.
Exemptions now face new conditions
Last August, Trump announced that tech companies expanding US manufacturing could sidestep steep semiconductor tariffs. The pledge spurred a wave of investment commitments, with giants such as Google and Apple unveiling new domestic projects. Trump even publicly praised Apple after months of criticism over its overseas production.
The back-and-forth underscores the uneasy relationship between Trump and the tech sector, where tariff threats, praise, and shifting terms have become part of the bargaining table.
While the talks point to where the administration is leaning, nothing has been formally decided.
“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesman Kush Desai said. “Unless officially announced by the administration, however, any reporting about our policymaking should be treated as speculative.”
The White House is also moving ahead with a $14 billion TikTok deal, keeping the app under close government oversight.