Trump mulls tariffs on foreign electronics based on number of chips

The Trump administration is considering imposing tariffs on foreign electronic devices based on the number of chips in each device, according to three people familiar with the matter, as it seeks to drive companies to shift their manufacturing to the United States. 

One of the sources consulted by Reuters said the Commerce Department was considering a 25% tariff rate for chip-related content in imported devices, with 15% rates for electronics from Japan and the European Union, stressing the figures were preliminary. 

Why it matters

If implemented, the plan would show the Trump administration is seeking to hit a wide range of consumer products, from toothbrushes to laptops, potentially driving up inflation as it seeks to ramp up U.S. manufacturing.