US Commerce Secretary Unveils Semiconductor Tariff Plan Tied to US Production

US Commerce Secretary Howard Lutnick announced a new semiconductor tariff policy that would reduce tariffs for companies producing in the US and impose tariffs on those that do not. The policy may extend to finished goods containing semiconductors, such as data center servers and consumer electronics. Lutnick stated the tariffs would be "targeted and thoughtful," linking tariff relief to US production investments. He cited existing pharmaceutical tariff exemptions as a model, noting about $1.2 trillion in US semiconductor investment commitments have been made, including from TSMC and Micron. The policy follows a 25% tariff on some advanced chips imposed in January. Lutnick also said Taiwan would announce an additional $20-30 billion in US investment next week, part of a $500 billion commitment under a US-Taiwan trade agreement.