BY THE PRESIDENT OF THE UNITED STATES OF AMERICA<\/p>\n
A PROCLAMATION<\/p>\n
1.\u00a0 <\/strong>On December 22, 2025, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into\u00a0the effects of imports of semiconductors (semiconductors or\u00a0chips), semiconductor manufacturing equipment, and their derivative products on the national security of the United States under section 232 of the Trade Expansion Act of 1962, as\u00a0amended, 19 U.S.C. 1862 (section 232).\u00a0 Based on the facts considered in that investigation, and taking into account the close relation of the economic welfare of the Nation to our national security and other relevant factors, see 19 U.S.C. 1862(d), the Secretary found and advised me of his opinion 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.<\/p>\n 2.\u00a0 The Secretary 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.\u00a0 The United States\u2019 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.\u00a0 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.\u00a0<\/p>\n 3. \u00a0The Secretary found that semiconductors are essential to the United States\u2019 economic, industrial, and military strength.\u00a0 Modern defense systems depend on high-performance semiconductors for radar and communication systems, electronic warfare and cybersecurity systems, and guidance and control systems for missiles and drones.\u00a0 Furthermore, defense systems often require specialized semiconductors that can withstand extreme environments.\u00a0 This reliance on semiconductors is expected only to increase.\u00a0\u00a0<\/p>\n 4. \u00a0The Secretary found that semiconductors are essential to each of the 16 critical infrastructure sectors identified by National Security Memorandum 22 of April 30, 2024 <\/a>(Critical Infrastructure Security and Resilience).\u00a0 For example, the communications sector requires semiconductors for broadband networks, routing, switching, telecommunications infrastructure, smartphones, and satellite communications systems.\u00a0 The energy sector requires them for smart grid control and converter systems.\u00a0 Nuclear reactors use semiconductors for sensors and safety systems, control-rod-actuation systems, distributed control systems, and power-management systems.\u00a0 The medical sector uses semiconductors in its imaging systems, diagnostic-assay systems, robotic surgical systems, and in pacemakers and defibrillators.<\/p>\n 5. \u00a0The Secretary found that the United States\u2019 capacity to manufacture semiconductors is too low to meet projected national defense needs and to match the requirements of a growing commercial industry.\u00a0 The United States consumes roughly one quarter of the world\u2019s semiconductors.\u00a0 The United States currently fully manufactures only approximately 10 percent of the chips it requires, making it heavily reliant on foreign supply chains.\u00a0 This dependence on foreign supply chains is a\u00a0significant economic and national security risk. \u00a0Given the foundational role that semiconductors play in the modern economy and national defense, a disruption of import-reliant supply chains could strain the United States\u2019 industrial and military capabilities.<\/p>\n 6. \u00a0The Secretary found that semiconductors that enable artificial intelligence (AI) are an important element of many data centers currently in use, such that the importation in current quantities and circumstances poses a threat to the national security, when such importation does not contribute to the buildout of the United States technology supply chain.<\/p>\n 7.\u00a0 In light of these findings, the Secretary recommended a\u00a0two-phase plan of action to adjust imports of semiconductors so that such imports will not threaten to impair the national security of the United States. \u00a0In the first phase, the United\u00a0States would continue ongoing trade negotiations with foreign jurisdictions that have the potential to strengthen the United States semiconductor industry. \u00a0The Secretary also recommended, as part of this first phase, immediately imposing a\u00a025 percent ad valorem tariff on a very narrow category of semiconductors that are an important element of my Administration\u2019s AI and technology policies, and that such tariff would not apply when the chips are imported to support the buildout of the United States technology supply chain.\u00a0 In the second phase \u2014 after trade negotiations have concluded \u2014 the Secretary recommended broader tariffs on semiconductors, at a rate of duty that is significant.\u00a0 The Secretary also recommended that this broader tariff be accompanied by 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.<\/p>\n 8. \u00a0After considering the Secretary\u2019s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, among other things, I concur with the Secretary\u2019s finding 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. \u00a0In my judgment, and in light of the Secretary\u2019s report, the factors in section 232(d) (19 U.S.C. 1862(d)), and other relevant factors and information, I have also determined that it is necessary and appropriate to adopt a plan of action, as described below, to adjust such imports of semiconductors, semiconductor manufacturing equipment, and their derivative products so that such imports will not threaten to impair the national security of the United States.\u00a0<\/p>\n 9.\u00a0 I have decided to include in the plan of action negotiations to address the threatened impairment of the national security with respect to imports of semiconductors, semiconductor manufacturing equipment, and their derivative products.\u00a0 I therefore direct the Secretary and the United\u00a0States Trade Representative (Trade Representative) to jointly pursue negotiation of agreements or continue any current negotiations of agreements, such as agreements contemplated in section\u00a0232(c)(3)(A)(i) (19 U.S.C. 1862(c)(3)(A)(i)), to address the threatened impairment of the national security with respect to imported semiconductors, semiconductor manufacturing equipment, and their derivative products, with any foreign jurisdiction the Secretary and the Trade Representative deem appropriate, and to update me on the progress of such negotiations within 90 days of the date of this proclamation. \u00a0Under current circumstances and in light of future requirements of the United States, this action is necessary and appropriate to address the threatened impairment of the national security<\/a>.\u00a0<\/p>\n 10.\u00a0 I have also determined that it is necessary and appropriate to impose an immediate 25 percent ad valorem duty rate on the import of certain advanced computing chips and certain derivative products described in the Annex to this proclamation (Covered Products), when such importation does not contribute to the buildout of the United States technology supply chain and the strengthening of domestic manufacturing capacity for derivatives of semiconductors. \u00a0I have further determined that it is necessary and appropriate that this duty rate not apply to imports of these Covered Products for use in United States data centers, for repairs or replacements performed in the United States, for research and development in the United States involving these chips, for startups in the United States, for non-data center consumer applications in the United States, for use in non-data center civil industrial applications in the United States, for use in United States public sector applications, or for other uses that the Secretary determines contribute to the strengthening of the United States technology supply chain or domestic manufacturing capacity for derivatives of semiconductors.\u00a0 In my judgment, the tariff regime imposed in clause (3) of this proclamation will address the threat to the national security found in this proclamation by, among other things, incentivizing the development of domestic manufacturing of certain semiconductors and their derivative products, reducing reliance on imports of certain advanced computing chips and certain derivative products, and promoting research and development in support of the United\u00a0States\u2019 high-tech infrastructure and capabilities.\u00a0<\/p>\n 11.\u00a0 In my judgment, based on current circumstances as well as the future needs of the United States, the actions in this proclamation are necessary and appropriate to address the threat\u00a0to impair the national security posed by imports of semiconductors, semiconductor manufacturing equipment, and their derivatives.\u00a0 In particular, the actions in this proclamation will, among other things, help increase domestic production of semiconductors and reduce our Nation\u2019s reliance on foreign sources and foreign supply chains.\u00a0 Along with other efforts by my Administration to promote the domestic semiconductor industry, the actions in this proclamation will ensure that domestic supply chains will be\u00a0able to meet current and future domestic demand for semiconductors and their derivative products, which is essential for our defense systems and industry.\u00a0 These actions will also incentivize domestic industry to reduce reliance on imports of semiconductors, while leveraging imported semiconductors in circumstances that accelerate AI innovation in the United States and aid in building out the domestic technology supply chain.<\/p>\n 12.\u00a0 Section 232 authorizes the President to take action to adjust the imports of an article and its derivatives that are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.\u00a0 Section 232 includes the authority to adopt and carry out a plan of action, with adjustments over time, to address the national security threat.\u00a0 This plan of action may include negotiations of agreements with foreign trading partners along with other actions to adjust imports to address the national security threat, including tariffs.\u00a0 If action under section 232 includes the negotiation of an agreement, such as one contemplated in section 232(c)(3)(A)(i) (19 U.S.C. 1862(c)(3)(A)(i)), the President may also take other actions he deems necessary to adjust imports to eliminate the threat that the imported article poses to the national security, including if such an agreement is not entered into within 180 days of the date of this proclamation, is not being carried out, or is ineffective. \u00a0See 19 U.S.C. 1862(c)(3)(A).<\/p>\n 13.\u00a0 Section 604 of the Trade Act of 1974, as amended (19\u00a0U.S.C. 2483) (section 604), authorizes the President to embody in the Harmonized Tariff Schedule of the United States (HTSUS) the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.<\/p>\n NOW, THEREFORE, I, DONALD J. TRUMP, President of the United\u00a0States of America, by the authority vested in me by the Constitution and the laws of the United States, including section 232, 19 U.S.C. 1862; section 604, 19 U.S.C. 2483; and section 301 of title 3, United States Code, do hereby proclaim as follows:<\/p>\n (1)\u00a0 The Secretary and the Trade Representative, and any senior official they deem appropriate, shall jointly pursue or continue pursuing negotiations of agreements contemplated in section\u00a0232(c)(3)(A)(i) (19 U.S.C. 1862(c)(3)(A)(i)) to address the threatened impairment of the national security with respect to imported semiconductors, semiconductor manufacturing equipment, and their derivative products.\u00a0 Depending on the status or resolution of such negotiations, I may consider imposing significant tariffs on imports of semiconductors, semiconductor manufacturing equipment, and their derivative products, as well as an accompanying tariff offset program to incentivize domestic manufacturing.<\/p>\n (2) \u00a0Within 90 days of the date of this proclamation, the Secretary and the Trade Representative, in consultation with any senior official they deem appropriate, shall update me on the status or outcome of the negotiations directed under clause (1) of this proclamation.<\/p>\n