While Trump’s tariffs have hit economies representing the majority of US trade, American officials have been careful to exempt products like chips, smartphones and other types of electronics.
Washington is looking to develop new tariffs on semiconductors, Commerce Secretary Howard Lutnick told CNBC Wednesday, although adding that tech giants are aware of the Trump administration’s plans.
“What you’re going to see is targeted, thoughtful tariff policy that basically says if you build here, you don’t pay,” Lutnick said.
Over the past year, businesses have scrambled to step up imports before new waves of US duties kicked in.
Although the US Supreme Court struck down many of Trump’s global tariffs in February, officials in July replaced them with fresh duties targeting 60 trading partners.
A separate trade investigation taking aim at 16 partners including China, the European Union and Taiwan, could lead to a further round of tariffs.
The United States meanwhile is engaged in a trade war with neighbouring Canada, with which its deficit narrowed in July. Last month, Trump slapped a 50 per cent duty on billions of dollars in Canadian goods, prompting Ottawa’s planned retaliation.
Also weighing on trade flows is fallout from the Middle East war, with Iran largely blocking off the Strait of Hormuz – a key waterway for global energy and fertiliser transit.
This has helped to raise demand for US energy products, but US firms have been grappling with snarled supply chains.
