The Trump administration is weighing a new round of tariffs on semiconductors, according to a Politico report that cited eight people familiar with the discussions. The proposal could go further than earlier chip duties by covering a significantly wider range of technology products.

Unlike previous tariff plans that focused mainly on microchips themselves, the new framework under consideration would also target products that use chips — including laptops, gaming consoles, and the servers that power data centers. That broader scope matters because it could reach far beyond the semiconductor supply chain and into consumer electronics and the infrastructure underpinning AI services.

WHITE HOUSE WEIGHS NEW ROUND OF CHIP TARIFFS

The Trump administration is considering broader semiconductor tariffs that could extend beyond chips to products such as servers, laptops and gaming consoles, per Politico.

One proposal would tie tariff-free import allowances to how… pic.twitter.com/42sgNDIubx

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Commerce Secretary Howard Lutnick is said to favor a structure that ties foreign companies' tariff relief to commitments to invest in U.S. chip manufacturing. The goal is to encourage more domestic production of semiconductors.

Officials are also discussing a phase-in period for the new tariffs. Even so, people familiar with the talks say the framework could still be revised substantially over the coming weeks or months, leaving the timing and scope of any changes unsettled.

The White House defended the approach in a statement. Spokesperson Kush Desai said reshoring semiconductor manufacturing is a top priority for President Trump, and that the administration's policies have already secured hundreds of billions of dollars in investment.

Tech Industry Pushes Back

The potential tariffs are drawing concern from U.S. tech companies that are already dealing with a shortage of high-end chips, as demand has surged amid the rapid build-out of AI data centers. If the policy extends to servers and related equipment, it could affect the pace at which companies expand those facilities, which rely on a steady flow of imported components.

Industry advocates say they support Trump's goal of building more chips on U.S. soil. But they point out that advanced chip factories cost billions of dollars and take years — sometimes decades — to build. Until that domestic capacity exists, U.S. companies will remain heavily dependent on imported chips. Taiwan alone produces more than 90% of the world's most advanced semiconductors.

Lobbyists have been meeting with senior officials, including Commerce Undersecretary Jeffrey Kessler, multiple times since the start of summer. They argue that the tariffs would slow data center expansion at a time when U.S. tech giants are spending record amounts on AI infrastructure.

Exemptions May Be Removed

Recent discussions have moved in a negative direction for the industry, according to the report. Trump administration officials have indicated they may no longer support exemptions that were included in the January tariffs. Those earlier exemptions covered data centers, research and development, startups, consumer applications, and public sector uses. Removing them would broaden the tariffs' impact.

Under the system Lutnick favors, a set volume of chips would be allowed into the country duty-free. That allowance would be tied to how much companies commit to manufacturing on U.S. soil. Critics say this structure risks widening the gap between the supply of tariff-free chips and the volume U.S. companies actually need.

Officials have not yet settled on the exact tariff rate or other key details of the plan. One idea under discussion would set separate rates and quotas for individual countries, with guidance covering their major chipmakers.

The White House and the Commerce Department did not immediately respond to requests for comment.