In a move to boost domestic production, President Donald Trump announced plans to impose a 100% tariff on semiconductor imports—with a major carve-out for companies manufacturing in the U.S. or committed to doing so. The proposal, unveiled Wednesday alongside Apple’s pledge to invest an additional $100 billion in U.S. operations, aims to pressure global tech firms to shift production stateside.
“For companies like Apple that are building here, there will be no charge,” Trump said in the Oval Office. However, he warned that businesses reneging on factory commitments would face retroactive penalties: “If you say you’re building and don’t, we’ll add it up and charge you later.” The remarks stopped short of a formal policy rollout, leaving key details—including enforcement mechanisms and global repercussions—unclear.
The semiconductor threat coincides with the activation of broader U.S. tariffs (ranging from 10% to 50%) on imports from multiple trading partners starting Thursday. Chips and other critical tech components have been under a national security review, with findings due by mid-August. The 100% rate would mark a drastic escalation in Trump’s trade war, which has already reshaped global supply chains.
Global governments and industry groups reacted swiftly, with analysts warning of spiraling costs for electronics and autos. The exemption for U.S.-based production mirrors earlier Trump-era incentives but introduces unprecedented stakes for chipmakers like TSMC and Samsung, which are expanding U.S. operations. As the policy takes shape, its success may hinge on whether foreign firms view American factories as a safer bet than paying punitive tariffs.
