Tariff concept and industry reaction

The U.S. is considering a tariff regime that would tax foreign electronics according to the number of chips inside each device. The draft approach, under discussion at the Commerce Department, would effectively penalize complex imports such as premium smartphones, laptops, game consoles and connected cars. Sources say one notional rate under review is around 15%, though the figure could change. Any scheme would need to mesh with existing trade frameworks and avoid double-counting where components already face duties.

Global supply chain implications

The proposal targets a key vulnerability in U.S. manufacturing: heavy reliance on overseas semiconductors and electronics assembly. Asian exporters could be hit hardest, particularly suppliers from Japan, South Korea, Taiwan and the European Union. Tech firms warn that counting chips—rather than using declared value—could raise compliance costs and create design distortions, such as re-architecting boards to reduce component counts. Supporters argue it would accelerate on-shoring and align with broader moves to boost domestic chip output, but legal, WTO and consumer-price questions loom.