Commerce Secretary Howard Lutnick told CNBC on Wednesday that the administration is exploring another set of import charges on semiconductors to pull more chipmaking to U.S. soil. He said the structure would mirror the approach used in pharmaceuticals, combining higher tariffs on imports with relief for companies that manufacture domestically. "That's what you should look for in semiconductors: If you build in America, we will give you tariff relief, and if you don't build in America, you will pay tariffs," Lutnick said. "That's pretty much a very sensible way of doing things, and it's working."
In January, President Donald Trump ordered 25% duties on certain advanced semiconductors following a Commerce Department investigation. The potential expansion under consideration is broader than chips alone. It could also reach products that contain them, meaning imports such as servers used in data centers and consumer electronics could face new charges.
Critics warn that additional tariffs could raise the cost of building data centers in the U.S. Lutnick countered that targeted relief for companies that fabricate in the U.S. could offset that. "I think what you're going to see is targeted, thoughtful tariff policy that basically says 'if you build here you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world,'" he said. "All of the companies know they're coming. They've all gone through it."
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According to Lutnick, firms have committed roughly $1.2 trillion to expand U.S. semiconductor capacity, citing examples like Taiwan Semiconductor Manufacturing Co. Ltd. as well as Micron Technology Inc., which are putting money into plants on American soil. He attributed part of that to a U.S.-Taiwan trade agreement finalized earlier this year. As part of that agreement, Taiwan vowed roughly $500 billion to finance projects and provide credit guarantees supporting high-tech manufacturing in the U.S. He added that Taiwan is set to announce another round of pledges next week, totaling either $20 billion or $30 billion.
If tariffs expand to servers and other chip-containing imports, the focus will be on how companies respond and where they choose to make or source gear. One live tension critics highlight is the potential for higher U.S. data center construction costs, while the administration points to tariff relief for firms that build domestically as a counterbalance. For everyday investors, the key takeaway is that policy levers here are actively shaping which imports face charges and where new chip capacity is getting built, alongside headline numbers like $1.2 trillion in U.S. investment commitments and fresh pledges from Taiwan on deck.