US President Threatens 100% Tariff On Imported Semiconductors To Boost US Manufacturing

US President Donald Trump has announced a plan to impose a 100% tariff on all imported semiconductors and chips in a bid to bolster domestic manufacturing and reduce reliance on foreign suppliers.

President Trump, during a meeting with Apple CEO Tim Cook in the Oval Office, announced, “I will impose a 100% tariff on all chips and semiconductors coming into the US. But if a company has committed to building in the US or is in the process of building, I will not impose any tariff.”

Companies Investing in the US May Be Exempt

Trump clarified that tech companies that have committed to setting up or expanding manufacturing operations within the United States would be exempt from the tariffs.

He cited Apple, Nvidia, and Taiwan Semiconductor Manufacturing Company (TSMC) as examples of firms that could benefit from this exemption due to their significant investments in US chip facilities.

“The good news for companies like Apple is if you’re building in the US or have committed to build, without question, there will be no charge,” President Trump added.

The proposed tariff will directly impact major semiconductor exporters such as Taiwan, South Korea, and Singapore, as they currently supply a significant share of advanced chips to the US market.

Companies such as Apple (with a $100 billion US investment) and TSMC (with a $165 billion commitment) have already established or are expanding domestic manufacturing units.

Nvidia and GlobalFoundries have also pledged to shift portions of their production to the US, potentially shielding them from the proposed tariff hike.

Tensions with India Over Import Duties

In a related trade development, the US government implemented a 25% import duty on Indian goods, effective August 7.

President Trump also threatened to raise the tariff by another 25% starting August 27, citing India’s continued imports of crude oil and military hardware from Russia.

In response, Prime Minister Narendra Modi asserted that India will not compromise on the interests of its farmers and fishermen, defending the country’s economic and strategic decisions amid escalating trade tensions.

Also Read: US President Trump Suggests India Oil Tariff May Have Prompted Progress In Russia Talks