Broad Tariffs on Semiconductors Risk Economic Harm and American Security
Since the start of his term, President Trump has implemented tariff policy to strengthen semiconductor supply chains to protect national security and encourage insourcing of future manufacturing. Policymakers should build upon the previous success of a targeted and limited tariff policy in the next phase. Blanket tariffs on all semiconductors would undo much of the good work done to date of increasing domestic manufacturing.
If done correctly, applying the right policy will strengthen domestic manufacturing. At the same time, good tariff policy should allow access to necessary semiconductor inputs American companies need. The defense industrial base needs access to semiconductors because those inputs are essential pieces of technologies used to protect America. The Trump Administration is considering an expansion of the scope of semiconductor tariffs, which would hurt critical U.S. industries at a time when our nation establishes a vibrant domestic semiconductor manufacturing base that does not exist today.
As a legal foundation for his tariffs, President Trump used existing law for the end goal of insourcing more domestic manufacturing. The Trump Administration has used Section 232 of the Trade Expansion Act of 1962 as authority to impose tariffs on several........
