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On January 14, 2026, President Trump issued a proclamation imposing new negotiation strategies for semiconductor manufacturing and 25% ad valorem tariffs on certain computing chips and derivative products (Covered Products) following a December 2025 Section 232 investigation by the Commerce Department. The investigation revealed that the importation of these products poses a threat to U.S. national security due to inadequate domestic production capabilities.
Key Findings:
- U.S. semiconductor manufacturing capacity is insufficient, resulting in increased dependence on foreign imports.
- Semiconductors are crucial for the U.S. economy, affecting sectors ranging from defense to healthcare.
- Current import levels jeopardize national security by not supporting the domestic technology supply chain.
Proclamation Highlights:
- The Secretary and Trade Representative will negotiate agreements to address national security threats from imported semiconductors. Based on these negotiations, the President will assess the need for tariffs and potential incentives for domestic production.
- A 25% ad valorem duty will apply to imports of qualified semiconductor products effective 12:01 AM ET on January 15, 2026, unless otherwise specified. This duty is additional to any existing tariffs.
- Exemptions from the duty include semiconductors for U.S. data centers, repairs, R&D by startups, and certain public sector applications, among others.
- The Secretary, in collaboration with the International Trade Commission and CBP Commissioner, will determine the need for changes to administrative measures or HTSUS modifications.
- Products falling under multiple tariff regimes will follow this proclamation's terms, superseding earlier executive orders regarding tariffs.
- There will be no drawback on duties imposed by this proclamation.
- The Secretary will continuously monitor semiconductor imports and report by July 1, 2026, to evaluate the tariff's effectiveness.
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