US weighs a new round of tariffs on semiconductors, Politico reports


FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo

Aug 27 (Reuters) - The ⁠Trump administration is considering a new round ⁠of sweeping tariffs on semiconductors, Politico reported ‌on Thursday citing eight people familiar with discussions.

A new tariff proposal could tax a wider range of tech goods. ​Instead of just targeting microchips, ⁠the duties would also ⁠apply to products that use them, such as ⁠laptops, ‌gaming consoles, and data center servers, the report said.

Commerce SecretaryHoward Lutnick favors a ⁠structure that will tie foreign companies’ relief ​from the ‌tariffs to investment in U.S. chip manufacturing ⁠to boost ​local production, the report said.

Washington is also mulling a phase-in period for the new tariffs and ⁠the framework could still be substantially ​revised in the coming weeks or months, Politico reported.

Reuters could not immediately verify the report. The ⁠White House and the U.S. Commerce Department did not immediately respond to requests for comment.

U.S. Trade Representative Jamieson Greer said in May there were ​no imminent new U.S. tariffs ⁠expected to be imposed on semiconductors, but that ​it was important to protect ‌the sector with duties ​to facilitate reshoring of chip production.

(Reporting by Shivani Tanna in BengaluruEditing by Tomasz Janowski)

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