Trump slams CHIPS act in congress – credits tariffs for investments
In an address to Congress on Tuesday, US President Donald Trump called the CHIPS Act a “horrible, horrible thing” and credited his administration's economic policies for a surge in domestic investment.
Trump, who returned to office in January, pointed to what he described as historic levels of private sector commitments in the country, asserting that his approach — focused on tariffs and deregulation — was driving semiconductor and technology firms to build domestically without government subsidies.
“Thanks to our America First policies we're putting into place, we have had USD 1.7 trillion of new investment in America in just the past few weeks,” Trump declared.
He cited major pledges from industry leaders, including a USD 200 billion investment from SoftBank, a USD 500 billion joint effort by OpenAI and Oracle’s Larry Ellison, and a separate USD 500 billion commitment from Apple.
Trump also touted a USD 100 billion commitment (adding to the existing commitment of USD 65 billion) from Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, to expand its operations in the US
However, in a rebuke of the 2022 CHIPS and Science Act, which allocated billions in subsidies to boost American semiconductor manufacturing, the president argued that such funding was unnecessary.
“We're not giving them any money. Your CHIPS Act is a horrible, horrible thing,” Trump said. “They take our money, and they don't spend it. All that meant to them was they didn’t want to pay the tariff. So they came and they’re building.”
The CHIPS Act, passed under the Biden administration, allocated USD 52 billion in direct subsidies to semiconductor firms to expand production and reduce dependence on foreign supply chains. Trump’s remarks indicate a significant policy shift, with a renewed emphasis on tariffs as a mechanism to encourage domestic manufacturing.
“We don’t have to give them money,” Trump continued. “We just want to protect our businesses and our people. And they will come because they won’t have to pay tariffs if they build in America.”
Trump concluded his remarks with a direct call to Congress, urging lawmakers to repeal the CHIPS Act and redirect remaining funds elsewhere. “You should get rid of the CHIPS Act and whatever is left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to,” he said.
