White House May Tax Laptops Now While Domestic Chip Factories Take Years To Build

WASHINGTON—The Trump administration is considering an expanded semiconductor tariff that could apply not only to imported chips, but also to laptops, gaming consoles, and the servers required to operate data centers.

The proposal remains under discussion and could change before it is announced. One approach would tie tariff relief for foreign manufacturers to investments in American chip production, while another detail under review is a phase-in period. The plan would therefore reward companies for beginning factories in the United States while collecting duties on products Americans need before those factories are finished.

The administration already imposed a 25 percent tariff in January on a narrow category of advanced computing chips, with exclusions for imports supporting the domestic technology supply chain. Its proclamation also announced a second phase with broader tariffs at a “significant” rate and an offset program for companies investing in American production. The new deliberations supply the products that might be included in that broader phase.

Chip manufacturing facilities cost billions of dollars and take years to construct. Import duties can take effect on a date printed in a proclamation. If the additional cost reaches consumers, the difference in construction schedules will let every new laptop contribute immediately to a factory that may eventually make part of a later laptop.

The objective is a self-sufficient American semiconductor industry. Until it exists, the country may protect that future industry by making the present supply of computers, consoles, and servers more expensive to bring inside.