President Trump orders narrowly targeted 25% Section 232 tariff on certain advanced semiconductor articles
11 min read
On January 14, 2026, President Trump issued a Presidential Proclamation adopting actions under the Section 232 investigation of advanced semiconductors, semiconductor manufacturing equipment, and derivative products.1 The proclamation:
- Imposes a 25% Section 232 tariff on a narrow set of imports of semiconductors and products containing those semiconductors that are not intended for use in the United States, effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EST on January 15, 2026.
- Directs the United States Trade Representative (USTR) to “jointly pursue or continue pursuing negotiations” with relevant foreign jurisdictions “to address the threatened impairment of the national security with respect to imported semiconductors, semiconductor manufacturing equipment, and their derivative products.”
Depending on the outcome of the negotiations, President Trump may consider imposing higher tariffs on additional semiconductors, semiconductor manufacturing equipment, and derivative products. The proclamation also notes that any potential future tariffs would include a tariff offset program for companies investing in US semiconductor manufacturing capacity.
Application of the 25% Section 232 tariff
The 25% Section 232 tariff applies to imports of certain semiconductors and products containing those semiconductors, based on their technical parameters and intended use. The Trump administration has indicated that the tariff targets “a very narrow category” of semiconductors. To determine whether the tariff applies, all imports falling under the covered Harmonized Tariff Schedule of the United States (HTSUS) subheadings must declare whether they meet specified descriptive and end-use criteria.
Covered HTSUS subheadings
The tariff applies to certain imported semiconductors and products containing semiconductors that are classified under designated HTSUS subheadings (described as “semiconductor articles” in the proclamation). Importers of products within the following HTSUS subheadings are required to submit entry filings declaring whether the product is or is not subject to the tariff.
- 8471.50: Parts and accessories for automatic data processing machines and units thereof, magnetic or optical readers, transcribing machines, etc., not elsewhere specified or included (NESOI).
- 8471.80: Automatic data processing units, NESOI.
- 8473.30: Parts and accessories for automatic data processing machines and units thereof, magnetic or optical readers, transcribing machines, etc., NESOI.
Required technical parameters
Semiconductor articles classified in the three covered HTSUS subheadings become subject to the 25% tariff if they also meet the following technical parameters or include a component that meets the following technical parameters.
The imported products must be a logic integrated circuit, or an article that contains a logic integrated circuit, that meets the technical parameters of having:
(1) a total processing performance (TPP) greater than 14,000 and less than 17,500, and a total DRAM bandwidth greater than 4,500 GB/s and less than 5,000 GB/s; or
(2) a TPP greater than 20,800 and less than 21,100, and total DRAM bandwidth greater than 5,800 GB/s and less than 6,200 GB/s.
The parameters are based on certain US export control rules. For a detailed description, refer to the proclamation Annex,2 or the relevant HTSUS Chapter 99 provisions.
No tariff on semiconductor articles that do not meet the technical parameters
Semiconductor articles that are classified under the specified HTSUS subheadings, but that do not meet the required technical parameters are exempt from the 25% tariff.
- 9903.79.02: tariff exception for products that are classified under the specified HTSUS subheadings, but that do not meet the required technical parameters.
Meets the technical parameters and does not satisfy the end-use exceptions
If the imported semiconductor articles are classified under the specified HTSUS subheadings, and meet the technical parameters, they are subject to the 25% tariff unless an end-use exception applies.
- 9903.79.01: 25% tariff applies to semiconductor articles that (1) are classified under 8471.50, 8471.80, or 8473.30; (2) meet the specified technical parameters; and (3) do not otherwise qualify for the end-use exceptions.
Tariff exceptions based on end-use
If a semiconductor article is (1) classified under the HTSUS subheadings 8471.50, 8471.80, or 8473.30 and (2) meets the specified technical parameters, importers have the option of claiming the following exceptions from the 25% tariff, which are based on the intended use of the imported product. According to the proclamation, these exceptions will prevent the 25% tariff from applying to semiconductor articles that “contribute to the buildout of the United States technology supply chain and the strengthening of domestic manufacturing capacity for derivatives of semiconductors.”
- 9903.79.03: semiconductor articles for use in US data centers.
- 9903.79.04: semiconductor articles for repairs or replacements performed in the United States.
- 9903.79.05: semiconductor articles for research and development in the United States involving these chips.
- 9903.79.06: semiconductor articles for use by startups in the United States.
- 9903.79.07: semiconductor articles for use in non-data center consumer electronics applications in the United States, including gaming, personal computing, professional visualization, workstation applications, and automotive applications.
- 9903.79.08: semiconductor articles for use in non-data center civil industrial applications in the United States, including factory robotics and industrial machinery.
- 9903.79.09: semiconductor articles for use in United States public sector applications.
The instructions do not specify how importers should substantiate claims for these exceptions. In other situations in which US import rules include end-use provisions (such as the HTSUS Chapter 98 provisions providing tariff exceptions for machinery and parts used for agricultural and horticultural purposes), US Customs and Border Protection (CBP) requires importers to maintain and submit documentation substantiating the actual end use.3
Additional details for products subject to the 25% tariff
Tariff stacking
Imports subject to the 25% tariff under 9903.79.01 are exempt from other Section 232 sectoral tariffs, as well as the global baseline and reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the additional 25% IEEPA tariff on imports from India, and IEEPA tariffs on imports from Canada and Mexico. This exemption does not extend to the additional 40% IEEPA tariff on certain imports from Brazil or the additional 10% IEEPA tariff on all imports from China.
Drawback
No drawback is available for duties imposed under this tariff.
Foreign trade zones
Products subject to this tariff that are admitted into a United States foreign trade zone on or after the effective date of the proclamation must be admitted as “privileged foreign status” under 19 CFR 146.41. Upon entry for consumption, they will be subject to the applicable ad valorem duty rates based on their HTSUS classification.
Chapter 98 provisions
Goods entered under a provision of chapter 98 that are subject to the tariff remain eligible for, and subject to, the terms of that provision and applicable CBP regulations. However, for goods entered under subheading 9802.00.60, duties will be assessed on the full value of the imported article.
Rationale for the tariff’s scope
The tariff appears to implement President Trump’s earlier announcement permitting the sale of certain advanced semiconductors to China. Taken together, the technical parameters and use descriptions imply the tariff is intended to apply to certain Nvidia H200 and AMD MI325X semiconductors that are imported into the United States to fulfill certain security requirements under a new US export control licensing system. The tariff applies only if these semiconductors, which are produced outside the United States, are imported into the United States, undergo a required security test, receive an export license, and are subsequently exported to China. If the semiconductors are not destinated for re-export, then the tariff would be unlikely to apply.
Concurrently with the issuance of the tariff order, the US Department of Commerce Bureau of Industry and Security (BIS) introduced a new license review system for the export of certain advanced semiconductors to China if “there is sufficient supply of this product in the United States; production of this product for exports to China will not divert global foundry capacity for similar or more advanced products for end users in the United States; the recipient has demonstrated sufficient security procedures; and the item undergoes independent, third-party testing in the United States to verify its performance specifications.”4
President Trump previously stated that export licenses for these advanced semiconductors to China would be contingent on the United States receiving a 25% fee on the sales. Importing these semiconductors into the United States for third-party testing, as required for the new export license, would trigger the application of the 25% Section 232 tariff, aligning with this policy objective.
Potential for broader semiconductor tariffs
Although the proclamation currently imposes only a single, narrowly targeted tariff, President Trump has reserved the authority to impose broader tariffs in the future.
Within 90 days of the proclamation (i.e., by April 14, 2026), USTR and the Department of Commerce are directed to report to President Trump on the outcome of the negotiations initiated by the proclamation. Depending on the progress of those negotiations, President Trump “may consider imposing significant tariffs on imports of semiconductors, semiconductor manufacturing equipment, and their derivative products[.]” The proclamation adds that any such tariff would include a tariff offset program “to enable companies investing in United States semiconductor production and certain parts of the United States semiconductor supply chain to obtain preferential tariff treatment.” Any future tariffs would need to be incorporated into the HTSUS through a subsequent proclamation, and new legal orders would be required to implement any tariff expansion.
This approach postpones any potential duties or other import measures on semiconductors and downstream goods containing semiconductors until later in the year. It also highlights the significance of the details in ongoing bilateral trade deal negotiations, particularly regarding country-of-origin provisions that have not yet been fully addressed.
The Department of Commerce investigation
The US Department of Commerce Bureau of Industry and Security (BIS) initiated the Section 232 investigation to determine the effects of imports of semiconductors, semiconductor manufacturing equipment (SME), and their derivative products on national security on April 1, 2025.5 BIS submitted the report on the investigation to President Trump on December 22, 2025, but has not provided a public copy. According to the president’s proclamation, the investigation determined that semiconductors, semiconductor manufacturing equipment, and their derivative products are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, providing the legal basis for President Trump’s action. In a summary of the investigation results, the proclamation states:
The Secretary [of Commerce] found that the present quantities and circumstances of imports of semiconductors, semiconductor manufacturing equipment, and their derivative products pose a threat to the national security and economy. The United States' capacity to produce semiconductors, certain semiconductor manufacturing equipment such as advanced lithography and etching tools, and their derivative products is insufficient to meet domestic demand. This has led the United States to be dependent on foreign sources to meet domestic demand for semiconductors, semiconductor manufacturing equipment, and their derivative products.
President Trump’s Section 232 tariff policy
Section 232 of the Trade Expansion Act of 19626 authorizes the president to take action, including imposing import measures and entering into negotiations, to adjust imports of products determined to threaten national security. Presidential action under Section 232 first requires the Department of Commerce to investigate the national security risks associated with the relevant sector. Unlike other US trade remedy laws (such as safeguards, Section 301, antidumping duties, and countervailing duties), the government need not demonstrate a market access violation or economic injury for a Section 232 action.
In 2025, the Trump administration adopted a two-track tariff strategy, (i) imposing “baseline” and “reciprocal” tariffs on most products from most countries under the International Emergency Economic Powers Act (IEEPA), apparently seeking to negotiate more favorable market access conditions and altering balances of trade; and (ii) imposing Section 232 tariffs (or other measures) on imports associated with industries the Trump administration views as strategically important to US national and economic security. Unlike most other tariffs President Trump has imposed, the IEEPA reciprocal tariffs and the Section 232 tariffs do not “stack” on top of each other. Instead, when President Trump issues a Section 232 tariff order, he exempts the products from the IEEPA tariffs.
Including the semiconductor Section 232 proclamation, seven Section 232 tariff orders are now in effect, covering most imports of steel and steel derivatives; aluminum and aluminum derivatives; passenger vehicles, light trucks, and parts; copper and copper derivative products; timber, lumber, and wood products; trucks, buses, and truck parts; as well as certain advanced semiconductors. Alongside the semiconductors proclamation on January 14, 2025, President Trump issued a proclamation on the Section 232 investigation of processed critical minerals and derivative products, which directed the negotiation of agreements instead of immediately imposing any tariffs.7 The administration is also conducting Section 232 investigations to consider new tariffs on pharmaceuticals and ingredients, commercial aircraft, polysilicon, unmanned aircraft systems, wind turbines, medical equipment and personal protective equipment, and industrial machinery and robots.
1 Presidential Proclamation of January 14, 2026: “Adjusting Imports of Semiconductors, Semiconductor Manufacturing Equipment, and Their Derivative Products into the United States;” Fact Sheet: “President Donald J. Trump Takes Action on Certain Advanced Computing Chips to Protect America’s Economic and National Security,” January 14, 2026; and CSMS # 67400472 – GUIDANCE: Section 232 Import Duties on Semiconductors and their Derivative Products, January 14, 2026.
2 See Annex to the Presidential Proclamation of January 14, 2026 for technical amendments to the HTSUS.
3 See 19 CFR Part 10 Subpart A - Rate of Duty Dependent Upon Actual Use.
4 See the final rule, “Revision to License Review Policy for Advanced Computing Commodities,” FR 91 FR 1684 (January 15, 2026).
5 “Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Semiconductors and Semiconductor Manufacturing Equipment,” 90 FR 15950 (April 16, 2025).
6 19 U.S.C. §1862, and 15 CFR part 705.
7 Proclamation 11001 of January 14, 2026: “Adjusting Imports of Processed Critical Minerals and their Derivative Products into the United States,” 91 FR 2439. See White & Case’s analysis of the critical minerals Section 232 proclamation at “President Trump orders critical minerals trade negotiations in Section 232 action.”
Authors: Ian Saccomanno, Samuel Scoles
For further information regarding this report or international trade matters, please contact any of the partners or senior attorneys listed below from White & Case’s Global International Trade Practice.
White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.
This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
© 2026 White & Case LLP