Lutnick confirms Trump administration preparing semiconductor tariffs

US Commerce Secretary Howard Lutnick confirmed on Wednesday that the Trump administration is working on a framework to impose tariffs on semiconductors.

"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.

"We will be successful in semiconductors. They're going to be built in America," Lutnick added, confirming a report published last week that anticipated the measure.

Citing people familiar with the matter, Politico reported last Thursday that one approach could significantly expand the range of products subject to tariffs. The measures could target not only chips but also products containing them, such as laptops.

US technology companies have raised concerns about the possibility, particularly as the industry is already facing semiconductor shortages while demand continues to surge.

Some observers said that although expanding chip production in the US would be desirable, the process could take years or even decades. Until then, manufacturers would have to rely on suppliers in Malaysia, South Korea and Taiwan, which together produce more than 90% of the world's supply.

The proposal comes as the Trump administration revives its tariff policy. On Saturday, it imposed duties on Canada, reaching 50% on about $20 billion worth of goods, including dairy products, wine, wood products, furniture, cement and ceramics.

Trump expanded the measure on Monday, saying in a social media post that "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%."

Lutnick also addressed the trade dispute with Canada, blaming Ottawa for the fallout. Speaking to CNBC, he said negotiators began "adding crazy ideas to the mix" hours before the deadline for reaching a deal.

"And I said to one of the ministers, 'Are you actually trying to blow this up?' And his answer to me was, 'I'm not allowed to say that,'" Lutnick claimed. "They blew it up for political reasons only," he added, while acknowledging that the US may also have made last-minute requests.

Originally published on IBTimes