Trump proposes 100% tariff on imported chips – with exemptions
President Donald Trump announced plans to impose a 100% tariff on imported semiconductors, while exempting companies that manufacture chips within the United States or have committed to doing so.
The proposal, unveiled during remarks at the White House on Wednesday, is part of the Trump administration’s broader push to bring high-tech manufacturing back to US soil. The announcement coincided with a pledge from Apple to invest an additional USD 100 billion in its home market.
“We’ll be putting a tariff on of approximately 100% on chips and semiconductors,” Trump told reporters, “But if you’re building in the United States of America, there’s no charge.”
While the remarks do not yet constitute a formal tariff order, they come ahead of new tariffs — ranging from 10% to 50% — taking effect Thursday on a wide array of goods. A national security review of semiconductor and technology imports is currently underway, with findings expected by mid-August.
According to Reuters, South Korea's Samsung Electronics and SK Hynix are expected to be exempt from the 100% levy, thanks to favourable terms under a bilateral trade agreement with the US. Taiwanese companies such as TSMC have also taken steps to mitigate risk by building US-based factories and collaborating with American chipmakers. Major customers such as Nvidia — which is also planning significant US investments — are unlikely to face increased costs for domestically produced chips.
Neither TSMC nor Nvidia responded to Reuters’ requests for comment.