President Announces Import Adjustments for Advanced Computing Chips and Critical Minerals Citing National Security

On January 14, 2026, the President of the United States issued two separate proclamations addressing imports deemed a threat to national security. One proclamation imposes an immediate 25% tariff on certain advanced computing chips, while the second initiates negotiations on processed critical minerals. Both actions are designed to bolster domestic capacity and reduce reliance on foreign sources for essential technologies and materials.

Proclamation on Advanced Computing Chips

The proclamation concerning advanced computing chips addresses imports of semiconductors, semiconductor manufacturing equipment, and their derivative products. It follows a December 22, 2025, report from the Secretary of Commerce.

The Commerce Department report concluded that the current import quantities and circumstances of these products threaten U.S. national security.

Key Findings from Commerce Department Report

The Secretary's investigation highlighted several critical findings:

• Insufficient Domestic Capacity: The United States lacks sufficient capacity to produce semiconductors, certain manufacturing equipment (such as advanced lithography and etching tools), and their derivatives to meet domestic demand, leading to heavy reliance on foreign sources.
• Economic and Military Importance: Semiconductors are considered essential for U.S. economic, industrial, and military strength, underpinning modern defense systems, communication, electronic warfare, and guidance systems.
• Critical Infrastructure Reliance: These chips are vital for all 16 critical infrastructure sectors, including communications, energy, nuclear reactors, and medical systems.
• AI Implications: The importation of AI-enabling semiconductors in current quantities is considered a national security threat if it does not contribute to the buildout of the U.S. technology supply chain.

The U.S. consumes approximately 25% of the world's semiconductors but fully manufactures about 10% of its needs, creating significant economic and national security risks due to foreign supply chain dependence.

Presidential Directives and Actions

Based on these findings, the President concurred with the Secretary's recommendations and adopted a two-phase plan:

• The Secretary of Commerce and the U.S. Trade Representative (USTR) are directed to jointly pursue or continue trade negotiations with foreign jurisdictions to strengthen the U.S. semiconductor industry.
• An immediate 25% ad valorem duty rate will be imposed on imports of certain advanced computing chips and their derivative products (Covered Products), effective January 15, 2026.

• Following the conclusion or status of trade negotiations, the President may consider imposing broader tariffs on semiconductors and related equipment. This could potentially be accompanied by a tariff offset program to incentivize domestic manufacturing.

Tariff Details and Exemptions

The 25% ad valorem duty will apply to Covered Products unless their importation contributes to strengthening the U.S. technology supply chain or domestic manufacturing capacity for semiconductor derivatives. Specific exemptions include imports for:

• U.S. data centers
• Repairs or replacements performed in the U.S.
• Research and development in the U.S.
• U.S. startups
• Non-data center consumer applications in the U.S.
• Non-data center civil industrial applications in the U.S.
• U.S. public sector applications

Implementation and Oversight

• The Secretary of Commerce and USTR must update the President on negotiation progress within 90 days.
• The Secretary of Commerce will monitor imports and provide an update on the data center semiconductor market by July 1, 2026.
• This proclamation's tariffs supersede any conflicting duties from other Section 232 proclamations or specific Executive Orders (14257, 14193, 14194).
• No drawback will be available for duties imposed under this proclamation.
• The Secretary of Commerce, USTR, and Secretary of Homeland Security are authorized to take all appropriate actions for implementation.

Proclamation on Processed Critical Minerals

On the same date, January 14, 2026, the President issued a separate proclamation addressing the import of processed critical minerals and their derivative products (PCMDPs). This action follows an October 24, 2025, report from the Secretary of Commerce.

The Commerce Department report concluded that current import quantities and circumstances of PCMDPs threaten U.S. national security.

Key Findings from Commerce Department Report

The Secretary of Commerce's investigation highlighted several crucial findings:

• Essential Role of PCMDPs: These minerals are crucial for nearly all industries, including advanced weapons systems, energy infrastructure, and consumer goods. Examples include rare earth permanent magnets in electronics, lithium in the chemical sector, and cobalt in the energy sector.
• Defense Industrial Base: PCMDPs are vital for high-performance military equipment like fighter aircraft, munitions, and communication networks.
• Critical Infrastructure: All 16 critical infrastructure sectors, identified by National Security Memorandum 22 (April 30, 2024), rely on processed critical minerals.
• Supply Chain Insecurity: The domestic critical minerals industry's limited capacity and foreign dominance create significant supply chain risks, with many defense supply chains relying on single-country suppliers for key minerals.
• Market Volatility: Price instability in critical mineral markets has hindered private investment, reducing domestic capacity.
• Declining Domestic Production: The U.S. has experienced a decline in critical mineral production, with facilities closing or offshoring activities.
• Increasing Demand: U.S. demand for critical minerals is increasing due to military requirements and growth in high-tech industries such as artificial intelligence, data centers, and new energy technologies.

The U.S. is 100% net-import reliant for 12 critical minerals and over 50% reliant for another 29 as of 2024. Despite domestic mining capacity for some minerals, the U.S. lacks sufficient domestic processing capabilities, often leading to re-importation after foreign refining.

The report concluded that these circumstances pose a significant national security vulnerability, exposing the U.S. to disruptions, economic instability, and strategic weaknesses.

Presidential Directives and Potential Future Actions

Concurring with the Secretary's findings, the President has directed the Secretary of Commerce and the U.S. Trade Representative to jointly pursue negotiations with trading partners.

• The goal of these negotiations is to adjust PCMDP imports to eliminate the threat to national security.
• Negotiations should consider measures such as price floors for critical mineral trade and other trade-restricting actions.
• An update on the negotiation status is required within 180 days of the proclamation date.
• The President stated that if satisfactory agreements are not reached in a timely manner, alternative remedies, including minimum import prices or other import adjustment measures, may be considered in the future.

Implementation and Oversight

• Relevant executive branch officials are authorized to take all appropriate actions to implement this proclamation, including issuing regulations.
• The Secretary of Commerce will continue to monitor PCMDP imports and review their status relative to national security, informing the President of any need for further action.