Trump mulls over tariffs on foreign electronics

The Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each one, according to three people familiar with the matter, as it seeks to drive companies to shift manufacturing to the United States.

According to the plan, which has not previously been reported and could change, the Commerce Department would impose a tariff equal to a percentage of the estimated value of the product’s chip content. The Commerce Department did not immediately respond to requests for comment.

“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” White House spokesperson Kush Desai responded when asked about the details.

“The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance.”

If implemented, the plan would show the Trump administration is seeking to hit a wide range of consumer products, from toothbrushes to laptops, potentially driving up inflation as it strives to ramp up US manufacturing.

The plan could push up the cost of consumer goods “at a time when the US has an inflationary problem, with inflation clearly above the Fed’s target and accelerating,” said Michael Strain, an economist with the conservative American Enterprise Institute. The Federal Reserve’s target inflation rate is 2%. Even domestically produced items would likely become more expensive, thanks to new tariffs on key inputs needed to make those goods, Strain added.

US President Donald Trump has deployed an array of tariffs aimed at bolstering American manufacturing. It announced on Thursday sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks.