U.S. Commerce Secretary Howard Lutnick said the Donald Trump administration is preparing a tariff framework for semiconductors, in what analysts read as a sign the government is weighing aggressive measures to boost domestic chip production.
In an interview with CNBC on the 2nd, Lutnick said the Trump administration is working on a semiconductor tariff system and that all companies are aware tariffs will be applied.
Politico reported on the 27th of last month, citing multiple sources, that the Trump administration was discussing a plan to sharply expand the range of products subject to semiconductor tariffs.
Options under review reportedly include setting separate tariff rates and import quotas by country, and drawing up country-specific guidelines for major chipmakers. A phased rollout of the new tariffs with a grace period has also been discussed. Lutnick, however, is said to favor an approach that ties tariff relief for foreign companies to their production investments in the United States.
"Going forward, you are going to see a targeted and carefully considered tariff policy," Lutnick said. "If you build here, you don't pay tariffs. If you don't, you had better be ready to pay tariffs to access the world's largest market."
The U.S. government began imposing semiconductor tariffs on a very narrow set of specific products in January this year, while signaling it could later extend the levies to chips more broadly. Analysts caution that a wider tariff net could spur chip production inside the United States but also slow the buildout of artificial intelligence infrastructure at a time of an explosive global shortage of AI chips.
On surging U.S. Treasury yields, Lutnick struck an optimistic tone, saying they were not a cause for concern. He said a recovery in U.S. economic growth and a smaller fiscal deficit would ultimately deliver lower interest rates. The 10-year Treasury yield briefly climbed as high as 4.815% during the session, its highest level since November 2023.
