Overview
- A presidential proclamation imposed a 25% ad valorem tariff on specified semiconductors and certain derivatives effective January 15, 2026, with no drawbacks and without stacking on other Section 232, IEEPA reciprocal, or fentanyl tariffs.
- End‑use exemptions cover U.S. data centers, domestic repairs and replacements, U.S. research and development, startups, non‑data‑center consumer electronics, non‑data‑center civil industrial applications, and public sector uses, subject to qualifying criteria.
- The semiconductor action proceeds in two phases, starting with the immediate tariff and negotiations, followed by potential broader measures and a tariff‑offset program, with a 90‑day negotiations report due by April 14, 2026, and a data‑center market update due July 1, 2026.
- A separate January 14 proclamation concluded the Section 232 investigation into processed critical minerals without tariffs for now, directing negotiations under a 180‑day window and reserving options for tariffs or minimum import prices if talks fail.
- Commerce, USTR, and Homeland Security will implement and monitor the actions, with enhanced import oversight and expected reporting to Congress, as policy goals focus on rebuilding U.S. mining and processing capacity and addressing price volatility.