Trump to levy more chip tariffs, exemptions for US manufacturing

Jennifer A Dlouhy / Bloomberg

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The Trump administration is weighing a fresh round of tariffs on imported semiconductors, potentially escalating levies on foreign chips in a bid to lure more manufacturing to the US.(Aug 2): The ...

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However, a new round of tariffs could extend their reach beyond semiconductors to products containing chips - hitting imports of data centre servers and consumer electronics. \nCritics have warned that additional tariffs could make it more costly to build data centres in the US. But Lutnick cast the inducement of tariff relief for domestic fabrication as a potential solution. \n\"I think what you're going to see is targeted, thoughtful tariff policy that basically says, 'If you build here, you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world,'\" Lutnick said. \"All of the companies know they're coming. They've all gone through it.\"\nAlready, he said, there's been some US$1.2 trillion in commitments to build semiconductors in the US, with companies such as Taiwan Semiconductor Manufacturing Co Ltd and Micron Technology Inc investing in domestic facilities. \nSome of that has been fed by the US-Taiwan trade pact finalised earlier this year. Under that agreement, Taiwan pledged some US$500 billion in investments and credit guarantees to support high-tech manufacturing in the US. \nLutnick said an additional round of investment pledges from Taiwan will be announced next week, with the island announcing another US$20 billion or US$30 billion worth of commitments. \nUploaded by Arion Yeow","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"policyRegulatory","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}