Trump Threatens 10% Tariff Feb. 1 on Some EU Countries, Norway, UK
President Donald Trump, in a social media post, said he will impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, the U.K. the Netherlands and Finland starting Feb. 1, rising to 25% on June 1. He said the tariff will remain "until such time as a Deal is reached for the Complete and Total purchase of Greenland. The United States has been trying to do this transaction for over 150 years. Many Presidents have tried, and for good reason, but Denmark has always refused. Now, because of The Golden Dome, and Modern Day Weapons Systems, both Offensive and Defensive, the need to ACQUIRE is especially important."
Trump complained that "Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland have journeyed to Greenland, for purposes unknown. This is a very dangerous situation for the Safety, Security, and Survival of our Planet."
Denmark always has a presence in Greenland, since it is a semi-autonomous territory, but the other countries have sent a few soldiers for exercises in response to Trump's saber rattling.
The social media post did not say if these tariffs are in addition to 10% International Economic Emergency Powers Act tariffs on the U.K. and 15% IEEPA tariffs on the EU countries and Norway.
However, it also left open the possibility the threat will not come to pass, because he ended the post saying, "The United States of America is immediately open to negotiation with Denmark and/or any of these Countries that have put so much at risk, despite all that we have done for them, including maximum protection, over so many decades."
Taiwan Gets 15% All-in IEEPA Rate, 15% for Auto Parts
Taiwanese auto parts and derivative goods subject to the lumber 232 actions will be subject to a 15% tariff, rather than the 25% rates applicable to most countries, the Commerce Department announced. The reciprocal tariff for Taiwan will also be cut, from 20% to 15%, inclusive of most-favored nation duties.
Taiwan's main export to the U.S. is semiconductors; the recent 232 action leaves the vast majority of chips untaxed, but said new rates could follow months from now.
The Commerce Department did not say what rate Taiwanese chips might face, but said that "Taiwanese companies building new U.S. semiconductor capacity may import up to 2.5 times that planned capacity without paying Section 232 duties during the approved construction period, with a lower preferential Section 232 rate for above-quota imports.
"Taiwanese companies who have completed new chip production projects in the United States will still be able to import 1.5 times their new U.S. production capacity without paying Section 232 duties."
There will be no reciprocal tariff on generic pharmaceuticals, their generic ingredients, aircraft components, and unavailable natural resources.
25% Tariffs Apply to Some Advanced Chips Beginning Jan. 15
Certain advanced chips -- including the NVIDIA H200 and AMD MI325X, a White House fact sheet said -- will be subject to 25% Section 232 tariffs starting Jan. 15, but a broad array of domestic uses of those chips are carved out from the action.
The tariffs will cover advanced microchips with specific parameters that are described in the annex to a presidential proclamation, but only when they are not going to be used "in United States data centers, for repairs or replacements performed in the United States, for research and development in the United States involving these chips, for startups in the United States, for non-data center consumer applications in the United States, for use in non-data center civil industrial applications in the United States, for use in United States public sector applications, or for other uses that the Secretary determines contribute to the strengthening of the United States technology supply chain or domestic manufacturing capacity for derivatives of semiconductors."
At a signing ceremony at the White House, the administration characterized the tariff as only applying to chips destined for customers outside the U.S.
However, the 232 investigation could result in tariffs on other products months from now. The proclamation says that the Commerce Secretary and U.S. Trade Representative will also undertake negotiations with countries that produce chips and chipmaking equipment, and if the administration is not satisfied that agreements with those countries will increase U.S. manufacturing in these sectors, "the [Commerce] Secretary recommended broader tariffs on semiconductors, at a rate of duty that is significant. The Secretary also recommended that this broader tariff be accompanied by a tariff offset program to enable companies investing in United States semiconductor production and certain parts of the United States semiconductor supply chain to obtain preferential tariff treatment."
Those agreements must be concluded within 180 days, the proclamation says.