Trump admin plans 1:1 chip production rule to curb overseas reliance

The Trump administration aims to encourage chipmakers to produce semiconductors domestically at volumes matching their customers’ current overseas imports, or face tariffs, according to The Wall Street Journal. President Donald Trump has intensified efforts to bring semiconductor manufacturing back to the U.S., offering tariff exemptions of approximately 100% on chips for companies that manufacture locally.
Reuters:
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Companies that fail to sustain a 1:1 domestic-to-import ratio over time would face tariffs, the Journal said.
U.S. Commerce Secretary Howard Lutnick floated the idea with semiconductor executives, telling them it might be necessary for economic security, the Journal said.
“America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security,” the newspaper cited White House spokesperson Kush Desai as saying, who added that any reporting about policymaking should be treated as speculative, unless officially announced.
Under the proposal, a company pledging to make chips in the U.S. would receive credit for that pledged volume, allowing imports without tariffs until the plant is complete, with initial relief to help ramp capacity, according to the report.
Trump’s moves have spurred domestic and international companies to invest hundreds of billions of dollars in expanding U.S. manufacturing.

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MacDailyNews Take: It doesn’t get more reciprocal than a 1:1 ratio.

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