What semiconductor tariff policy is the Trump administration considering, according to Howard Lutnick?

Lutnick said the administration is working on a targeted and thoughtful tariff policy that would exempt companies producing in the United States. He said firms that do not build in America should expect to pay tariffs to enter the U.S. market.

Why did Lutnick say tariff relief would be tied to U.S. chip investment?

He said tariff relief would reward companies that build in America and discourage those that do not. Lutnick also confirmed that this structure is meant to push semiconductor production into the United States and follows the administration’s broader manufacturing policy.

How could new U.S. chip tariffs affect Samsung Electronics and SK hynix?

The article says Samsung Electronics and SK hynix are closely watching the tariff policy because it could affect their business activities in the United States. It also says the administration’s broader goal is to boost domestic manufacturing, cut the trade deficit, and increase federal revenue and foreign investment.

Lutnick: Trump gov't considering 'targeted,' thoughtful' tariff policy for semiconductors

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Summary

U.S. Commerce Secretary Howard Lutnick said in Washington on Wednesday that President Donald Trump’s administration is crafting a targeted and thoughtful tariff policy for semiconductors. He said companies that produce in the United States would not pay duties, and those that do not build there should expect tariffs. Lutnick said the approach would mirror the administration’s treatment of pharmaceuticals, with tariff relief tied to U.S. investment.

Key Facts

Lutnick said the administration is considering tying tariff relief to investment in U.S. chip manufacturing.
He said companies building in America would receive tariff relief, while those that do not would pay tariffs.
Politico reported last week that one proposal under consideration could expand duties beyond chips to goods made with them, including laptops, gaming consoles, and data center servers.
The report also said one idea under review would set separate tariff rates and quotas for individual countries with country-specific guidance for major semiconductor manufacturers.
Lutnick said the semiconductor policy would follow the same general approach used for pharmaceutical imports, including tariff relief for companies that built innovative pharmaceuticals in America and used MFN treatment.

By Yonhap

Published Sep 3, 2026 2:05 am KST

U.S. Secretary of Commerce Howard Lutnick listens as NVIDIA CEO Jensen Huang speaks during the G20 Innovation Ministerial in Chapel Hill, North Carolina, on Wednesday. AFP-Yonhap

WASHINGTON — U.S. Commerce Secretary Howard Lutnick said Wednesday that President Donald Trump's administration is working to craft a "targeted" and "thoughtful" tariff policy for semiconductors, reiterating that companies that produce products in the United States would not pay duties.

During a CNBC interview, Lutnick confirmed that the administration is working on the envisioned tariffs, after Politico, a media outlet, reported last week that it is weighing new chip tariffs despite warnings from tech companies that the move could doom U.S. hopes of dominating artificial intelligence.

"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," the secretary said.

Asked to confirm the Politico report that he favors a structure tying foreign companies' tariff relief to investment in U.S. chip manufacturing, Lutnick said, "Yeah. It's exactly right."

"If you build in America, we will give you tariff relief, and if you don't build in America, then you will pay tariffs, and that's pretty much a very sensible way of doing things," he reiterated.

In its report last week, Politico said that one tariff approach under consideration would dramatically expand the number of tech products subject to the duties, affecting not just chips but potentially many of the goods made with them, such as laptops, gaming consoles or the servers that fill data centers.

The report also said that one idea under consideration would set separate tariff rates and quotas for individual countries, with country-specific guidance covering their major semiconductor manufacturers.

The secretary said the chip tariff policy would follow a similar approach to the administration's policy on pharmaceutical imports.

"Look at the way the administration dealt with pharmaceuticals," he said.

"We all worked together as sort of one government, right? We gave tariff relief to companies who built their innovative pharmaceuticals in America and did MFN (most-favored-nation). So that's what you should look for in semiconductors," he added.

South Korean chipmakers Samsung Electronics Co. and SK hynix have been closely watching the Trump administration's tariff policy as it could affect their business activities in the U.S.

The Trump administration has been doubling down on its tariff policy to boost domestic manufacturing, reduce America's trade deficit, and increase federal revenue and foreign investment.

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