The Trump administration is weighing a new round of "sweeping tariffs on semiconductors," according to a report.

The proposal under consideration would expand the number of technology products subject to duties, including chips and servers used in data centers.

According to the sources, US Commerce Secretary Lutnick wants to favor a system under which foreign companies could seek relief from the duties depending on their involvement and investment in efforts to strengthen domestic semiconductor manufacturing in the United States.

That approach would tie import duties directly to an industrial-policy agenda Washington is already funding. The CHIPS and Science Act of 2022 allocated $52.7 billion to rebuild domestic chipmaking, including $39 billion in manufacturing incentives administered by the Commerce Department that Lutnick leads, and the reported framework would extend that same investment test from subsidies to tariff relief.

The sources also said the administration is considering a phase-in period for the new tariffs, while the framework could still be revised in the coming weeks and months. Sectoral tariffs of this kind have precedent. The administration has used Section 232 of the Trade Expansion Act of 1962 for metals and automobiles, and in 2025 it opened a Section 232 investigation covering semiconductors and semiconductor manufacturing equipment. The open questions now include which product categories are ultimately covered, how long any phase-in runs, and whether foreign chipmakers respond by deepening their US commitments, all of which would shape the policy's practical reach.

The full report can be found here (may be gated).

The report returns attention to semiconductors and follows Nvidia's earnings call yesterday. As noted earlier:

"For now though, the message is that the AI boom is continuing to expand more broadly. However, Nvidia did warn that memory shortages could persist well into 2028. So, that in essence is a margin issue for the company amid tighter supply and more durable demand conditions."

The timing is notable for the AI buildout. Data center servers are among the products that would be swept into the duties, and they anchor the multi-year capital spending programs the largest cloud and AI companies have already committed to. With memory shortages expected to remain a key issue in the years ahead, tariffs would add another structural and supply-side challenge for the AI sector. The main customers, including big tech companies, are likely to face greater scrutiny as the issue develops.

Memory makers and semiconductor companies would face challenges as well, although the costs could ultimately be passed through the supply chain.