Trump Announces 300% Semiconductor Tariff Plan Steel Levies to Rise as Well

President Donald Trump has announced plans to impose new tariffs on steel and semiconductor chip imports, signaling a continuation of his administration’s strategy to strengthen domestic manufacturing and reduce reliance on foreign supply chains [1]. Speaking to reporters aboard Air Force One, Trump indicated that the tariffs—initially set at lower rates—would increase over time to incentivize companies to establish or expand production in the United States [2]. The proposed tariffs on semiconductor chips could reach as high as 300%, while steel tariffs may also rise significantly, building on existing 25% and 50% levies imposed earlier in his term [3].

The president emphasized that the initial tariff rates would be relatively low, giving companies time to adjust before higher duties take effect. This phased approach is consistent with Trump’s prior strategies in sectors such as pharmaceuticals, where he introduced initially modest tariffs that increased after a set period [4]. Trump also suggested that companies committing to onshoring manufacturing could be exempt from the new duties, potentially offering a path to compliance without costly relocation [5].

The U.S. Department of Commerce has been conducting a Section 232 investigation into semiconductor imports since April 2025, providing the legal framework for the president to justify tariffs based on national security concerns [6]. However, the lack of clear timelines or finalized policies has left many companies in a state of uncertainty, with some planning for potential shifts in production while others remain cautious about the likelihood of implementation [7].

The market has already shown mixed reactions to the proposed tariffs. While Intel’s stock rose, reflecting some investor optimism, other semiconductor stocks fell, illustrating the sector’s divided response to the potential changes [8]. Analysts have pointed out that Trump’s repeated threats to impose tariffs, without immediate action, create unnecessary disruption for businesses. Companies are forced to allocate resources toward contingency planning, which may detract from long-term innovation and investment [9].

Industry insiders caution that the feasibility of rapidly shifting semiconductor production to the U.S. remains questionable. Manufacturing advanced chips requires extensive global supply chains, long lead times, and significant capital investment. Moreover, supporting industries such as water supply, logistics, and raw material availability will likely pose additional hurdles to scaling up domestic fabrication capabilities [10].

Trump’s strategy of announcing extreme tariff proposals without immediate implementation has become a recurring feature of his trade policy. This approach creates a climate of uncertainty, forcing companies to speculate about the likelihood of tariffs and how best to adjust their operations. Some analysts predict that firms may raise prices rather than invest in new U.S. facilities, especially if the tariffs remain in flux [11]. Others suggest that the threat of tariffs could accelerate investment in U.S. chip manufacturing, though this remains speculative [12].

The administration’s focus on semiconductors is part of a broader effort to secure domestic supply chains, particularly in high-tech industries. Steel tariffs were also mentioned in several of Trump’s remarks, indicating a multi-sector approach to reshaping import policies [13]. However, the administration has not yet provided details on how tariffs will be phased in or how exemptions will be determined, leaving key questions unanswered.

As the U.S. continues to recalibrate its trade policies, the global trade landscape faces increasing complexity. Whether these tariffs materialize in their current form or evolve in response to industry and political feedback remains to be seen. However, the prolonged uncertainty is already influencing strategic decision-making within the semiconductor and steel sectors [14].

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[1] Yahoo - [https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-semiconductor-tariffs-coming-soon-could-reach-300-200619487.html](https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-semiconductor-tariffs-coming-soon-could-reach-300-200619487.html)

[2] CoinMarketCap - [https://coinmarketcap.com/community/articles/689fb98c9125420f9907faf3/](https://coinmarketcap.com/community/articles/689fb98c9125420f9907faf3/)

[3] Times of India - [https://timesofindia.indiatimes.com/business/international-business/another-tariff-hit-donald-trump-signals-levies-on-chips-and-steel-semiconductor-duties-may-hit-300/articleshow/123323616.cms](https://timesofindia.indiatimes.com/business/international-business/another-tariff-hit-donald-trump-signals-levies-on-chips-and-steel-semiconductor-duties-may-hit-300/articleshow/123323616.cms)

[5] Yahoo - [https://finance.yahoo.com/news/trump-teases-300-chip-tariffs-215958768.html](https://finance.yahoo.com/news/trump-teases-300-chip-tariffs-215958768.html)

[6] Tom's Hardware - [https://www.tomshardware.com/pc-components/cpus/trump-mulls-a-300-percent-tariff-on-chips](https://www.tomshardware.com/pc-components/cpus/trump-mulls-a-300-percent-tariff-on-chips)

[8] Investopedia - [https://www.investopedia.com/trump-plan-for-300-percent-semiconductor-tariffs-weighs-on-chip-stocks-except-intel-here-is-why-11791726](https://www.investopedia.com/trump-plan-for-300-percent-semiconductor-tariffs-weighs-on-chip-stocks-except-intel-here-is-why-11791726)