WASHINGTON, D.C. — President Donald Trump has issued a proclamation ordering new trade actions targeting imports of semiconductors, semiconductor manufacturing equipment, and related products, citing concerns that heavy reliance on foreign supply chains threatens U.S. national security and economic stability.
The move follows a Section 232 investigation by the U.S. Department of Commerce, delivered to the White House on December 22, 2025, which concluded that current levels of semiconductor imports pose a risk to the nation’s defense capabilities, critical infrastructure, and long-term economic resilience.
According to the report, the United States consumes roughly 25 percent of the world’s semiconductors but manufactures only about 10 percent of the chips it needs domestically. Commerce officials warned that this imbalance leaves the country vulnerable to supply chain disruptions, particularly for advanced chips used in defense systems, artificial intelligence, energy infrastructure, healthcare technology, and communications networks.
“Semiconductors are essential to America’s economic, industrial, and military strength,” the proclamation states, noting their critical role in missile guidance systems, radar, cybersecurity platforms, power grids, nuclear reactors, and medical devices.
Immediate 25% Tariff on Certain Advanced Chips
As part of a two-phase strategy, the president ordered an immediate 25 percent tariff on a narrow category of advanced computing chips and certain derivative products, effective 12:01 a.m. on January 15, 2026. The tariff applies when imported chips do not contribute to strengthening the U.S. technology supply chain or domestic manufacturing capacity.
However, the administration carved out several exemptions. The tariff will not apply to semiconductors imported for:
- U.S. data centers
- Domestic repairs or replacements
- Research and development
- U.S.-based startups
- Consumer electronics
- Civil industrial uses
- Public-sector applications
- Other uses deemed supportive of domestic manufacturing
Officials say the goal is to protect national security while still allowing imports that accelerate innovation and domestic production.
Broader Tariffs Possible After Trade Talks
In the second phase, the administration plans to pursue negotiations with foreign trading partners over semiconductor supply chains. The president directed the Commerce Department and U.S. Trade Representative to update him on progress within 90 days.
If negotiations fail or prove ineffective, the proclamation allows for significantly broader tariffs, potentially paired with a tariff offset program designed to reward companies that invest in U.S.-based semiconductor manufacturing.
AI and Critical Infrastructure a Key Focus
The proclamation places special emphasis on semiconductors used in artificial intelligence, warning that current import patterns do not always support the buildout of domestic AI infrastructure. Chips critical to AI data centers were identified as a particular national security concern if production remains overseas.
The administration also highlighted semiconductor dependence across all 16 critical infrastructure sectors, including energy, communications, healthcare, transportation, and defense.
Ongoing Monitoring and Review
The Commerce Department will continue monitoring semiconductor imports and must provide a market update by July 1, 2026, particularly focusing on chips used in U.S. data centers. The president reserved the authority to modify or lift tariffs if conditions change.
The proclamation supersedes any conflicting prior executive orders or proclamations and bars companies from seeking duty drawbacks on the new tariffs.
