The new Administration in the United States has been aggressively focusing on trade measures to establish more balanced relationships with its trading partners, according to the White House.
Over the last several weeks, President Trump declared a U.S. economic emergency and announced a universal 10% tariff on all countries, which went into effect on April 5, 2025. There are also levies that Trump has called “reciprocal,” including a 34% tariff on Chinese goods and a 20% tariff on European Union imports, that started on April 9.
Previously announced 25% tariffs on foreign-made autos and certain auto parts are also now in effect.
Presently, finished semiconductors are exempt from these tariffs, however, a Federal Register notice provided the following update:
On April 1, the Secretary of Commerce initiated an investigation under section 232 of the Trade Expansion Act (19 U.S.C. 1862) to determine the effects on national security of imports of semiconductors, semiconductor manufacturing equipment (SME), and their derivative products. This includes, among other things, semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components. Derivative products include downstream products that contain semiconductors, such as those that make up the electronics supply chain.
The SEMI Advocacy team is working side by side with member companies in the U.S. to prepare industry’s response for the public comment period tied to the 232 investigation. Comments are due May 7. (Update: SEMI comments submitted.)
SEMI has been tirelessly working to educate new policymakers and regulators about the negative impacts the proposed tariffs have on the semiconductor industry.
Ajit Manocha, President and CEO of SEMI, and Joe Stockunas, President of SEMI Americas, have been to Washington, D.C. for a series of meetings with administration officials and on Capitol Hill. Clarity on the recent tariff announcements — and guidance on what could come next — has been at the top of the agenda.
Additionally, many member company executives recently attended the SEMI Washington Fly-In to advocate for policies that support the global supply chain on Capitol Hill, and the topic of tariffs was of the highest priority for congressional staff.
Considering the complexities of the semiconductor industry supply chain, U.S. companies must rely on highly specialized materials, equipment, and components sourced from multiple countries. Strategically deployed and comprehensively assessed trade actions ensure that U.S. businesses maintain market access to critical supplies and remain globally competitive.
Additionally, SEMI has highlighted that through fair and reciprocal trade practices, the U.S. can avoid unintended cost increases, supply chain disruptions, and ultimately any risks to American competitiveness in the global marketplace. Coordinating trade policies with allies prevents retaliatory tariffs for industries critical for national security, such as the semiconductor industry, and keeps costs competitive for consumers and industries, all while fostering a more resilient domestic manufacturing ecosystem.
Semiconductor companies make substantial investments in building new facilities, and policy stability and predictability are key factors in site selections. With governments around the world putting incentives in place to bolster their semiconductor ecosystems, and to attract industry investments and good-paying jobs, public-private synchronization on trade policies is crucial to help the U.S. meet its technology innovation goals.
Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.
John Cooney is VP, Global Advocacy & Public Policy at SEMI.
