Lutnick Warns of Targeted Semiconductor Tariffs if Companies Do Not Manufacture in the US

Howard Lutnick has revived the threat of semiconductor tariffs, warning that companies may have to pay for access to the US market if they do not manufacture there.

The US commerce secretary said Washington was reviewing a new tariff policy described as “targeted, thoughtful.” Unlike Chinese semiconductors, Korean memory products had not faced tariffs, but the United States is now considering tariffs as a way to push companies toward investment in domestic production.

Lutnick outlined the approach during an interview with CNBC in Chapel Hill, North Carolina, where he attended a G20 meeting of innovation ministers. “The basic premise is that if you build a plant and produce in America, you don’t pay tariffs, but if you don’t produce, you should be prepared to pay tariffs to enter the world’s largest market,” he said.

The policy could have consequences for Samsung Electronics and SK Hynix, both of which have semiconductor factories in the United States or are building them. Lutnick compared the proposed approach with tariffs already applied to pharmaceutical products, according to the report.

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The basic premise is that if you build a plant and produce in America, you don’t pay tariffs, but if you don’t produce, you should be prepared to pay tariffs to enter the world’s largest market.