Trump Proposes 100% Tariff on Chips and Semiconductors

In an announcement on Wednesday, President Trump stated his intention to impose a 100% tariff on “all chips and semiconductors.”

At an event in the Oval Office with Apple CEO Tim Cook, Trump said, “We’re going to put about 100% tariffs on chips and semiconductors.”

He indicated that manufacturers planning to move operations to the U.S. would be exempt, suggesting that Taiwan’s TSMC, the largest chipmaker globally, might be safe, particularly since it is building a significant facility in Arizona.

“If it is built in the United States, there is no fee, even though you may not have a lot of production happening yet,” he explained. “So, 100% tariff on every chip and semiconductor that enters the U.S.”

Cook chose not to comment on the proposed tariffs when he had the chance during the press interaction.

Trump portrayed this move as a way to hold companies accountable that commit to establishing U.S. manufacturing.

He mentioned, “For some reason, if you say you don’t build, we’ll go back and sum it up, and you’ll have to pay later, and that’s guaranteed.”

Trump expressed confidence that all chip companies would eventually return to the U.S., citing Intel’s return and noting the trend of companies shifting their operations back, particularly from Taiwan.

This proposal follows Trump’s earlier implementation of a hefty “mutual” tariff, a 10% baseline tax on many countries, alongside 50% tariffs on foreign-made steel, aluminum, and copper, as well as a 25% tax on foreign-made cars, aimed at bolstering American industry.

Additionally, he hinted at similar measures for pharmaceuticals and timber but did not specify when the new tariffs on computer chips would take effect.