The Trump administration is reportedly exploring the possibility of introducing tariffs on imported electronic devices that would be calculated based on the number of semiconductor chips each device contains.

The proposed measure is still under consideration and has not been finalised, reported Reuters, citing three individuals with knowledge of the development.

Under the plan, the Commerce Department could set tariffs as a percentage of the portion of a product’s value attributed to its semiconductor chips.

White House spokesperson Kush Desai, has been quoted by the publication, as saying: “America cannot be reliant on foreign imports for the semiconductor products that are essential for our national and economic security.

“The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the US with tariffs, tax cuts, deregulation, and energy abundance.”

If implemented, this tariff system would apply to a broad range of consumer goods containing semiconductors, such as laptops and toothbrushes.

President Donald Trump had previously made use of various tariffs to encourage domestic manufacturing.

In April, his administration initiated investigations into imports of pharmaceuticals and semiconductors with a view towards imposing further tariffs amid concerns about overreliance on foreign sources for these products.

There remains uncertainty over which electronic products with chips would be subject to tariffs, what rates would apply, and whether exemptions might be granted for particular countries or companies.

Last month, Trump said the US would implement roughly 100% tariffs on semiconductor imports except for companies manufacturing in the US or those that have pledged to do so.

Major non-US chip manufacturers include South Korea’s Samsung Electronics and Taiwan Semiconductor Manufacturing Co (TSMC).

One source told Reuters that the Commerce Department is mulling a 25% tariff on chip-related content in imported devices and a 15% rate for electronics from Japan and the European Union; however, these figures are preliminary.

There is also discussion about offering exemptions proportional to investments in US-based manufacturing if a company relocates half its production to the US.

According to sources, officials previously proposed excluding chipmaking tools from the tariffs to avoid increasing costs for domestic semiconductor production. That move was reportedly opposed by the White House due to President Trump’s general aversion to exemptions.