Trump to Impose 100% Tariff on Imported Chips Unless Manufactured in the United States

According to foreign media reports, on August 6, U.S. President Trump announced that a 100% tariff would be imposed on imported semiconductors and chips, but this policy does not apply to companies that build factories in the United States. This new tariff policy targeting specific industries indicates that Trump is stepping up efforts to encourage companies to manufacture domestically in the United States.

Trump; Image source: The White House

Trump said, "We will impose very high tariffs on chips and semiconductors. But the good news for companies like Apple is that if they build factories in the United States or commit to building factories in the United States, they will not have to pay tariffs."The statement was made when Trump announced Apple's commitment to reinvest in the United States over the next four years.1,000 After being published in hundreds of millions of dollars,Previously, Apple had already pledged to invest $500 billion in the United States.

However, the specific details of the aforementioned plan are not yet clear, such as how much manufacturing activity a company needs to carry out within the United States to qualify for tariff exemptions. It is worth noting that Trump has previously hinted that tariffs on imported chips and semiconductors may soon take effect.

Chips and semiconductors have become crucial components in almost every industry. Under the pressure from the Trump administration to restructure the semiconductor supply chain back to the United States, chip manufacturers are increasing domestic production in the U.S. Several top chip manufacturers, such as TSMC, have also committed to producing some products in the United States. According to the Semiconductor Industry Association, since 2020, the U.S. has announced over 130 projects.Semiconductor investmentThe project has a total investment of 600 billion US dollars.

As the world’s largest chip foundry, TSMC has committed to investing $165 billion in the United States. In April this year, Nvidia, the world’s most valuable company, announced plans to invest $500 billion in AI infrastructure in the U.S. over the next four years. In June this year, GlobalFoundries pledged to invest $16 billion to expand its semiconductor manufacturing facilities in New York and Vermont.

In June of this year, Texas Instruments announced that the company will invest over $60 billion in the construction or expansion of seven chip manufacturing plants located at three sites in Texas and Utah. Unlike NVIDIA and AMD, which focus on AI chips, Texas Instruments produces analog or fundamental chips used in everyday products such as smartphones, automobiles, and medical devices, boasting a large customer base including Apple, SpaceX, and Ford Motor Company. Micron Technology also announced in June that it will increase its investment in the United States to $30 billion, bringing its total planned investment to $200 billion.