The U.S. Commerce Department announced a 25% national security tariff on certain high-end semiconductors.

A White House official said the move is a “phase one” step to protect the U.S. chip sector and may be followed by additional actions.

Further announcements could come after negotiations with other countries and companies.

President Trump has previously warned of imposing tariffs as high as 100% on chips not manufactured in the United States, Yahoo Finance has reported.

The measures aim to encourage more domestic semiconductor production.