Trump slaps 25% tariff on some semiconductor imports

Washington: US President Donald Trump has said he has signed two new trade actions under Section 232. The moves target critical minerals and semiconductor imports.

White House Staff Secretary Will Scharf said the first action followed a trade investigation into critical minerals. He said it creates a process to secure US supply chains for critical minerals and related products.

The second action focuses on semiconductors. Scharf said it sets up a two-phase process. Under the first phase, certain imported semiconductors will face a 25 per cent tariff.

He said the tariff would apply to chips imported into the United States that are not used domestically to build artificial intelligence or computing systems.

Semiconductors shipped through the US to other countries would also be subject to the tariff.

Trump said the move would generate revenue for the United States. He said foreign buyers want the chips and the US would collect “25 per cent” of their value. He described the chips as “very good,” though not the most advanced.

The president said tariffs have brought “hundreds of billions of dollars” into the country and strengthened national security.

Trump was asked about a legal challenge to his tariff authority that is now before the Supreme Court. He said he could not believe the case exists. He called it an effort by “very China-centric people” who do not want the United States to succeed.

He said tariffs have helped reduce trade imbalances and attract investment. Trump said the US has seen “$18 trillion” in investment commitments since he returned to office.

He also claimed tariffs helped lower inflation and increase productivity. He said they have been used as leverage in foreign policy and trade negotiations.

Trump pointed to recent manufacturing announcements as evidence. He cited auto plants expanding operations and new investment by major carmakers.

He said tariffs have also helped the US compete with China. “We’re doing great against China,” he said.

Trump said a ruling against his tariff authority would be “very disappointing.” He did not say how the administration would respond if the court limits his powers.

The president called the United States “the hottest country anywhere in the world,” contrasting it with what he described as economic weakness before his return to office.

--IANS

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