US imposes 25 percent tariff on imports of certain semiconductors

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US imposes 25 percent tariff on imports of certain semiconductors

2026-01-15 16:16 Last Updated At：01-16 11:36

The United States announced on Wednesday that it will impose a 25-percent tariff on certain imported semiconductors, semiconductor manufacturing equipment and related derivative products starting Thursday.

According to a proclamation by U.S. President Donald Trump posted on the website of the White House, he outlined a two-phase plan in light of suggestion from U.S. Secretary of Commerce Howard Lutnick. In the first phase, Trump said, the United States will continue negotiations with foreign authorities capable of strengthening the U.S. semiconductor industry.

Meanwhile, he said the 25-percent tariff is being applied immediately to a small portion of imported semiconductors, semiconductor manufacturing equipment and derivatives deemed critical to U.S. artificial intelligence and technology policy.

The proclamation said that once the relevant negotiations are completed, the United States will extend tariffs to a wider range of imported semiconductors at a significant rate during the second phase.

The proclamation also said that Lutnick proposed a tariff-offset mechanism, under which companies that invest in semiconductor production and supply chain within the United States will be eligible for preferential tariff treatment.

In early August 2025, Trump declared that the United States would move to impose 100-percent tariffs on imported semiconductor products.

Eurozone composite PMI falls to lowest level in 31 months

The eurozone composite purchasing managers' index (PMI) -- a key indicator of business activity -- fell to 47.5 in May, the lowest level in 31 months, according to data released in an S and P Global report on Thursday.

The report said that increased cost pressures have led to a contraction in business activities in the eurozone.

The service sector, a key pillar of the economy, took a heavy hit, with its PMI plunging to 46.4, a 63-month low.

Meanwhile, the manufacturing PMI stood at 51.4, suggesting the pace of expansion slowed to its weakest since January.

The report quoted Chris Williamson, chief business economist at S and P Global Market Intelligence, as saying that the preliminary PMI data for May showed the war in the Middle East has been weighing increasingly heavily on the eurozone economy.

The eurozone economy is expected to contract by 0.2 percent in the second quarter, while inflation could approach 4 percent in the coming months, according to Williamson.