Semiconductors Added to Section 232 at 25%

A presidential proclamation effective January 15, 2026 added advanced semiconductors and products containing them to the Section 232 national security tariff framework at a 25% rate. The tariff is narrowly targeted at advanced semiconductor articles (selected HTS 8541, 8542 subheadings) and was justified as necessary to protect the domestic semiconductor supply chain. Semiconductor manufacturers in the US, Taiwan, South Korea, and Europe are all affected.

Electronics manufacturers, computer hardware companies, and any US importer of advanced semiconductors and semiconductor-containing products. This affects the tech supply chain broadly — from consumer electronics to industrial equipment. Semiconductors are also exempted from Section 122 as an S232-covered product.

Semiconductors Added to Section 232 at 25% (effective 2026-01-15). A presidential proclamation effective January 15, 2026 added advanced semiconductors and products containing them to the Section 232 national security tariff framework at a 25% rate. Section 232 of the Trade Expansion Act of 1962 authorizes the President to impose tariffs or quotas on imports when the Department of Commerce determines that the import levels threaten to impair national security. The statute provides broad executive authority and has been used extensively since 2018 to cover steel and aluminum, with subsequent expansions to copper, automobiles, lumber, and semiconductors. Section 232 tariffs are notably permanent in character — unlike Section 122, they carry no statutory expiration and can remain in effect indefinitely once imposed. Products covered by Section 232 are exempt from the Section 122 surcharge under the February 2026 proclamation, meaning importers of S232-covered goods do not face double-stacking of these two tariff authorities. However, S232 rates do stack on top of MFN base rates, and China-origin products that fall under Section 301 may face additional tariff layers on top of S232. The expansion of Section 232 to cover copper in March 2025 and semiconductors in January 2026 reflects a broader industrial policy strategy to protect domestic manufacturing capacity in strategic sectors. Importers of S232-covered products should verify the exact HTS classification of their goods and confirm whether any country-specific exemptions or quotas apply to their sourcing country.

Manufacturers and importers of S232-covered products should work with licensed customs brokers to verify HTS classifications and ensure correct duty application. Country-of-origin documentation is critical: the S232 tariffs apply to the country where the product was substantially transformed, not simply where it was last shipped from. Some S232-covered products have product-exclusion processes through the Department of Commerce; check current exclusion orders before assuming the full rate applies to your specific product.

• Section 232 Explainer
• Semiconductors & Chips