US President Donald Trump is planning to impose new tariffs on steel and semiconductor chip imports, according to media reports, a move that could further shake global trade already strained by US protectionist policies. The tariffs are expected to be announced at low rates initially that would rise sharply over time to encourage domestic production.
Tariffs aimed at boosting US manufacturing
- Trump explained that the new tariffs will be at lower rates at the start - giving companies time to adjust and expand US manufacturing capacity.
- Steep increases later - possibly reaching 100 percent or more on semiconductors.
Trump emphasized that exemptions would be granted to companies investing in US production.
Steel tariffs: building on earlier measures
The announcement comes after multiple rounds of tariff hikes on steel and aluminum. In February this year, Trump raised steel and aluminum tariffs to 25 percent, while in May the tariff rate on steel was doubled to 50 percent to further support domestic producers. It remains unclear whether the new announcement signals another increase on tariffs on metals or simply a continuation of current rates.
Impact on global trade
Trump’s tariff strategy has already disrupted global supply chains. Previous measures targeted nearly all foreign exports to the US, alongside sector-specific tariffs on steel, aluminum, and automotive products. With semiconductors at the heart of consumer electronics, AI systems, and industrial technology, the new tariffs could have wide-reaching effects on global markets.