The Trump administration is reported to be brewing a significant new regulation: planning to impose taxes on imported electronic products based on the number of chips

According to three informed sources, the Trump administration is considering imposing tariffs based on the number of chips contained in imported electronic devices to encourage companies to bring manufacturing back to the United States. This plan, which has not been publicly reported and may change, indicates that the U.S. Department of Commerce will impose proportional tariffs based on the estimated value of the chip content in products.

The U.S. Department of Commerce did not immediately respond to a request for comment.

When asked about specific details, White House spokesperson Kush DeSai responded, "The United States cannot rely on foreign imports for semiconductor products that concern national and economic security. The Trump administration is using a multi-faceted precision strategy, including tariffs, tax cuts, deregulation, and energy advantages, to bring critical manufacturing back to the U.S."

If implemented, this plan would mean that the Trump administration is attempting to impose taxes on a variety of consumer goods, from toothbrushes to laptops, which could exacerbate inflation while promoting domestic manufacturing.

Michael Strain, an economist at the American Enterprise Institute, stated that this move "could raise the cost of consumer goods against the backdrop of U.S. inflation significantly exceeding the Federal Reserve's 2% target and accelerating." He added that even domestically produced goods could see price increases due to new tariffs on key components.

President Trump has recently frequently used tariffs to boost U.S. manufacturing, announcing on Thursday comprehensive new tariffs of 100% on brand-name drugs and 25% on heavy trucks, breaking a period of trade calm.

In April, the Trump administration initiated a "301 investigation" into imported drugs and semiconductors, paving the way for tariffs on the grounds of national security.

However, the scope, rates, and exemption terms of the new tariffs remain uncertain. Trump stated in August that he would impose tariffs of about 100% on imported semiconductors, but exemptions were already in place for companies producing in the U.S. or committing to build factories. Major chip manufacturers outside the U.S. include Taiwan Semiconductor and Samsung Electronics.

Informed sources said that the Department of Commerce is considering imposing a 25% tariff on the chip content of imported devices, with a 15% tax rate applicable to products from Japan and Europe, but emphasized that these figures are only preliminary proposals.

Sources added that the Department of Commerce would only consider granting equivalent tariff exemptions based on investment in the U.S. if companies moved half of their production capacity to the U.S., but specific implementation plans have not been determined.

Three sources indicated that the Department of Commerce had suggested exempting chip manufacturing tools from tariffs to avoid raising the production costs of U.S. semiconductors, which would contradict the goal of bringing the industry back, but the White House expressed dissatisfaction with this due to Trump's opposition to exemption terms