The US Commerce Department’s 25% national security tariff on certain high-end semiconductors, announced on Wednesday, is a “phase one” action to protect the sector and could be followed by other announcements pending negotiations with other countries and companies, a White House official said on Thursday, as Reuters reported. The official, speaking on condition of anonymity, said President Donald Trump has previously threatened a 100% tariff on chips not made in the US as he seeks to build up domestic semiconductor manufacturing. Previously, Trump on Wednesday imposed a 25% tariff on certain AI chips, under a new national security order released by the White House. The Trade Expansion Act of 1962 targets many high-end semiconductors meeting specific performance benchmarks, as well as devices containing them, for import duties. The action is part of a broader effort to create incentives for chipmakers to produce more semiconductors in the US.

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