01/16/2026

U.S. Announces Tariffs on Certain Semiconductor Imports to Protect National Security

Check out this week's Customs Corner to read about new semiconductor tariffs to protect national security, the U.S.-Taiwan trade agreement boosting chip manufacturing, and more.

Trade and Customs Updates

1) U.S. Announces Tariffs on Certain Semiconductor Imports to Protect National Security

On December 22, 2025, the Secretary of Commerce delivered a report to President Trump warning that imports of semiconductors and related equipment pose a threat to U.S. national security. Following this, the U.S. government has announced a two-phase plan to strengthen the domestic semiconductor industry.

 

Starting January 15, 2026, a 25% tariff will apply to a select group of advanced computer chips and related products, unless they are being imported for uses that help expand America's technology supply chain—like data centers, repairs, research, startups, consumer electronics, and public sector projects. Other chip imports for these important uses will be exempt from the tariff.

 

The plan also calls for trade negotiations with foreign partners to support the U.S. semiconductor sector. If these talks don't resolve the security concerns, broader tariffs and incentives for domestic manufacturers could be introduced in a second phase. The Commerce Secretary and Trade Representative will review progress and report back within 90 days.

 

For the purposes of this note, "semiconductor articles" refers to imported products meeting certain technical parameters and that are classifiable in the provisions of the HTSUS enumerated in this subdivision:

  • 8471.50
  • 8471.80
  • 8473.30

 

To be included within the definition of semiconductor articles, the imported products must be a logic integrated circuit, or an article that contains a logic integrated circuit, that meets certain technical parameters:

 

(1) a total processing performance (TPP) greater than 14,000 and less than 17,500, and a total DRAM bandwidth greater than 4,500 GB/s and less than 5,000 GB/s; or

(2) a TPP greater than 20,800 and less than 21,100, and total DRAM bandwidth greater than 5,800 GB/s and less than 6,200 GB/s.

 

In addition, if a semiconductor product is eligible for a reduced tariff or duty-free treatment under a free trade agreement or special U.S. trade program, the new extra tariff listed under heading 9903.79.01 will still apply on top of any existing reduced duty.

 

If the product is being entered under special customs rules (Chapter 98), those rules still apply, but for goods classified under subheading 9802.00.60, the extra duty will be calculated based on the full value of the item, not just the part that's being imported.

 

Additional information, including the stacking rules can also be found in the Annex.

 

References:

 

2) U.S. and Taiwan Sign Agreement to Boost American Semiconductor Industry

The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States signed a trade agreement on January 15, 2026.

 

Key highlights of the agreement include a cap on reciprocal U.S. tariffs for Taiwanese goods at 15%, with Section 232 duties on Taiwanese auto parts, timber, and wood products also limited to 15%. Certain essential products, such as generic pharmaceuticals, their ingredients, aircraft components, and scarce natural resources from Taiwan, will benefit from zero tariffs.

 

The agreement also encourages Taiwanese investment in the American semiconductor industry. Taiwanese companies building new chip plants in the U.S. can import up to 2.5 times the planned production capacity duty-free during construction, with a lower preferential tariff for any additional imports. Once new U.S. chip facilities are completed, these companies may continue importing up to 1.5 times their new domestic production capacity without Section 232 duties.

 

Reference:

Fact Sheet: Restoring American Semiconductor Manufacturing Leadership Through an Agreement on Trade & Investment with Taiwan | U.S. Department of Commerce

 

3) U.S. Customs Lifts Ban on Malaysian Palm Oil Producer FGV After Forced Labor Reforms

U.S. Customs and Border Protection (CBP) announced on January 15, 2026, the lifting of a years-long import ban on palm oil and related products from Malaysia's FGV Holdings Berhad. Effective immediately, FGV's palm oil shipments will be allowed entry into the United States, provided they comply with all other U.S. laws.

 

The decision modifies the Withhold Release Order (WRO) originally issued on September 30, 2020, which barred FGV's products from U.S. ports over concerns about forced labor. CBP Commissioner Rodney S. Scott stated, "Responsible trade must protect the people behind the product, not put them at risk. FGV has now made the corrections we required, and this modification helps keep our supply chains fair, secure, and accountable."

 

This is CBP's first WRO modification in fiscal year 2026. Since 2019, the agency has taken action against forced labor in Malaysia's palm oil and glove industries, leading to over $85 million in repayments of withheld wages and recruitment fees to exploited workers. CBP only lifts bans when there is clear evidence that companies have eliminated forced labor from their operations.

 

FGV Holdings implemented reforms after the 2020 WRO, addressing all 11 International Labour Organization indicators of forced labor and working with CBP's established process for ban modifications.

 

Reference:

CBP modifies Withhold Release Order on FGV Holdings Berhad in Malaysia | U.S. Customs and Border Protection

 

4) President Trump Orders Trade Negotiations to Protect U.S. National Security from Critical Mineral Imports

On January 14, 2026, President Donald J. Trump signed a proclamation directing the U.S. Secretary of Commerce and the U.S. Trade Representative to negotiate agreements with international trading partners aimed at safeguarding national security from imports of processed critical minerals and their derivative products (PCMDPs). 

 

The Administration will work with U.S. allies to establish price floors for these minerals, seeking to prevent market disruptions and strengthen domestic supply chains. The Secretary of Commerce will monitor and report any developments that could require further action under Section 232 of the Trade Expansion Act of 1962. If the negotiated agreements are not reached within 180 days, are not implemented, or prove ineffective, the President may take additional steps to adjust imports and address national security risks.

 

Reference:

Fact Sheet: President Donald J. Trump Directs Negotiations to Adjust Imports of Processed Critical Minerals and Their Derivative Products into the United States -- The White House

 

5) DEA Releases Updated Implementation Guide for Importing Tableting and Encapsulating Machines

The U.S. Drug Enforcement Agency (DEA) has published an updated Implementation Guide (IG), now available in the 'Draft Chapters: Future Capabilities' section of CBP.gov. This revised guide provides new instructions for importers on submitting PGA Message Set data for tableting and encapsulating machines—a requirement being introduced as DEA will soon mandate that machine data be submitted through Customs and Border Protection's Automated Commercial Environment (ACE) PGA Message Set. 

 

The deployment schedule is below:

  • January 20, 2026 – Deploy to Certification Environment.
  • March 21, 2026 – Deploy to Production and enforce new DE3 flag with a WARNING severity.
  • May 2, 2026 – Enforce DE3 flag with a REJECT severity.

 

The new guidance aims to streamline compliance and improve monitoring of machine imports. For more details and to access the guide, visit CBP.gov.

 

Reference:

CSMS # 67396599 - An updated U.S. Drug Enforcement Agency Implementation Guide is now available with a new section providing guidance on submitting PGA Message Set data for tableting and encapsulating machines

 

EVENT: ACE Support Calls on Electronic Refunds Final Rule

Beginning February 6, 2026, U.S. Customs and Border Protection (CBP) will issue all refunds electronically via Automated Clearing House (ACH) (subject to limited exceptions), as announced in the Electronic Refunds Interim Final Rule published January 2, 2026 in the Federal Register (FR Document 2025-24171).

 

Deadline/Event Date:

 

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