President Donald Trump mentioned Wednesday he’ll impose a 100% tariff on imports of semiconductors and chips, however not for companies that are “building in the United States.”
The announcement of latest sector-specific tariffs reveals Trump ratcheting up his efforts to stress companies to fabricate their merchandise in the U.S.
But specifics about the plan, comparable to how a lot U.S. manufacturing an organization must do in order to qualify for the tariff exemption, weren’t instantly clear.
“We’re going to be putting a very large tariff on chips and semiconductors,” Trump mentioned in the Oval Office on Wednesday afternoon.
“But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” he mentioned.
“So in other words, we’ll be putting a tariff on of approximately 100% on chips and semiconductors. But if you’re building in the United States of America, there’s no charge.”
Trump had beforehand signaled that the duties on chips and semiconductors, which have turn into key parts in just about each trade, might come as quickly as subsequent week.
The remarks got here after Trump touted a dedication by Apple to take a position one other $100 billion in the U.S. over the subsequent 4 years, on high of the $500 billion the tech large has beforehand pledged.
Several high chipmakers, together with Taiwan Semiconductor, Nvidia and GlobalFoundries, have already pledged to fabricate a few of their merchandise in the U.S.
They’re not alone: More than 130 tasks in the U.S. totaling $600 billion {dollars} have been introduced since 2020, in response to the Semiconductor Industry Association.
TSMC, the world’s largest contract chip firm, has pledged to take a position a complete of $165 billion in U.S. manufacturing.
Nvidia, the world’s most useful firm, mentioned in April that it plans to spend $500 billion on AI infrastructure in the U.S. over the subsequent 4 years.
GlobalFoundries pledged $16 billion in June to broaden its semiconductor manufacturing at amenities in New York and Vermont.
Also in June, Texas Instruments introduced a $60 billion increase to seven chip fabs in the U.S. The firm counts Apple, Ford, Medtronic, Nvidia and SpaceX as prospects.