White House mulls semiconductor probe, tariffs likely to follow

In recent months, Trump has ramped up tariff measures as part of his broader trade strategy during his second term.

President Donald Trump is preparing to instruct the Commerce Department to launch a national security investigation into semiconductor imports, a move that could pave the way for sweeping new tariffs on the critical technology, POLITICO reported, citing a White House official.

The investigation would be conducted under Section 232 of the Trade Expansion Act of 1962, which allows the U.S. president to restrict imports that pose a threat to national security. The official, who spoke to POLITICO on condition of anonymity, said the planned probe is aimed at “reviving U.S. manufacturing in critical technologies.”

If initiated, the investigation could further escalate tensions between the United States and several East Asian economies, including Taiwan, South Korea, Japan, and Malaysia — key players in the global chip supply chain. China, the world’s largest consumer of semiconductors, could also be significantly impacted.

While Section 232 investigations typically take up to 270 days, the White House may push for an accelerated timeline. The Commerce Department also intends to open a public comment period as part of the process, according to POLITICO.

Trump has indicated that semiconductor tariffs could start at 25 percent and climb “substantially higher” within a year. He has also floated the possibility of expanding tariffs to other strategic sectors, including pharmaceuticals.

The move comes on the heels of the administration’s Friday announcement to temporarily exempt certain electronic devices from recent tariffs — a decision Commerce Secretary Howard Lutnick described on ABC’s This Week as a short-term reprieve. “This is not like a permanent sort of exemption,” Lutnick said, noting that those products will still be subject to forthcoming semiconductor tariffs.

In recent months, Trump has ramped up tariff measures as part of his broader trade strategy during his second term. In addition to a flat 10 percent tariff on most imports, the administration has imposed 145 percent duties on select Chinese goods and launched Section 232 probes into the copper and timber industries.

Criticism of the tariff policy has also mounted. Senator Elizabeth Warren (D-Mass.) criticized the president’s approach during an appearance on CNN’s State of the Union, saying, “Investors will not invest in the United States when Donald Trump is playing red light, green light with tariffs.”

With the White House pursuing dozens of bilateral trade deals and imposing a 90-day deadline for negotiations, the potential semiconductor tariffs could become another major flashpoint in the administration’s evolving economic agenda.