President Donald Trump has announced plans to impose tariffs on imported semiconductor chips, citing a need to boost domestic production and “uncomplicate” the industry.
The tariffs are expected to be announced within the next week, with possible flexibility for certain companies.
The move is likely to further escalate trade tensions with China, which has already responded to US tariffs by increasing its own levies on US imports to 125%.
Trump’s commerce secretary, Howard Lutnick, said critical technology products from China, including smartphones and computers, would face new duties within two months.
The tariffs have sparked concerns about potential economic impacts, including higher inflation and slower growth. Billionaire investor Ray Dalio warned that the US could be pushed into recession if the tariffs are not handled well.
China’s Ministry of Commerce has criticized the US move, saying the country needs to evaluate the impact of the exclusions for technology products.
The US business community has also expressed concerns, with some calling for a pause on tariffs to reduce disruption and risk.
The development comes as the US and China engage in a tit-for-tat trade war, with both sides imposing increasingly high tariffs on each other’s imports.
