US President Donald Trump has announced a new tariff on semiconductors imported into the US – but the additional tariff is both a lower rate and narrower scope than the sweeping semiconductor tariffs threatened last year.
On January 14 Trump announced a 25% tariff on some semiconductors, which went into effect the following day. The tariff is an additional import tax on top of existing fees.
However, the 25% tariff is only being applied to a limited list of semiconductors that are imported into the US and then re-exported. The new tariff does not apply to consumer electronics destined for American shelves, which means the new tariff won’t impact camera prices in the US.
The tariff is both a lower rate and a more limited scope than the 100% tariff on all semiconductors threatened last year. Semiconductors are key to electronics – which includes cameras, as a digital camera sensor is one form of a semiconductor.
The measure appears to save cameras – and all other consumer electronics – from an additional tariff on top of existing rates. However, the report from the Secretary of Commerce shared last month suggests a two-phase plan – and it’s unclear what the next phase of the semiconductor tariffs may be.
The tariffs are an effort to encourage domestic production of semiconductors. The Secretary’s report found the US’s ability to manufacture its own semiconductors is “too low to meet projected national defense needs and to match the requirements of a growing commercial industry.”
The US only manufactures around 10% of the semiconductors that it consumes, the report says, with the US currently responsible for consuming a quarter of the world’s semiconductors.
The US’s reliance on foreign supply chains “poses a threat to national security,” Trump’s proclamation reads.
The US tariffs imposed under the International Emergency Economic Powers Act are currently awaiting a decision by the Supreme Court. If turned down, experts indicate the US would be required to issue refunds to importers, while others say the administration could use other measures to apply tariffs.
The new 25% tariff on semiconductors is under a different trade law, meaning it likely won’t be affected by a Supreme Court ruling.
A majority of camera companies have increased list prices in the US following the implementation of additional tariffs on imported goods last year.
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