Trump Plans 100% Chip Tariff, Unless Companies Build in US/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump announced a 100% tariff on imported computer chips unless companies manufacture in the U.S. The move is part of his broader push to reshore semiconductor production and curb foreign dependence. Apple and other tech giants with U.S. operations may be exempt, easing stock market concerns.
Trump’s Chip Tariff Plan + Quick Looks
- Trump proposes a 100% import tariff on computer chips, sparing U.S.-based manufacturing.
- The goal is to pressure companies to build semiconductors in America.
- Trump: “If you’re building in the United States of America, there’s no charge.”
- The announcement came during a meeting with Apple CEO Tim Cook.
- Apple recently upped its U.S. investment to $600 billion.
- Big Tech’s total U.S. investment since January exceeds $1.5 trillion.
- Stock prices for Apple, Nvidia, and Intel climbed following the announcement.
- Trump’s tariff approach contrasts with Biden’s CHIPS and Science Act.
- The semiconductor industry has yet to formally respond to the move.
- Global chip demand surged 19.6% year-over-year, signaling strong market growth.
Deep Look
Trump’s 100% Chip Tariff Aims to Force Tech Manufacturing Back to U.S.
President Donald Trump on Wednesday announced a sweeping new policy to impose a 100% tariff on imported computer chips, unless companies manufacture them domestically—a move set to have dramatic implications for electronics, automotives, and appliances that rely on these vital semiconductors.
“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said from the Oval Office during a meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”
The move follows months of anticipation since Trump temporarily exempted electronics from earlier rounds of tariffs. The decision now signals a more aggressive posture in his push to reshape global tech supply chains and bring chipmaking home.
Exemptions for U.S.-Based Production
Companies that produce chips on American soil will be exempt from the tariffs, Trump confirmed. That decision could shield firms like Apple and Nvidia, who have recently made multi-billion-dollar investments in domestic infrastructure.
Indeed, Apple has pledged $600 billion in U.S. investments, and overall Big Tech commitments now surpass $1.5 trillion since Trump returned to the White House in January. Wall Street interpreted Trump’s tariff design—exempting U.S. production—as favorable for Apple and other domestic tech manufacturers.
Apple stock jumped 5% in regular trading and another 3% after Trump’s announcement, showing investor optimism that iPhones built overseas might be spared via new U.S.-based supply chain shifts.
Industry Response & Market Ripples
Although Nvidia and Intel have not responded directly to inquiries, their stocks ticked up in after-hours trading. Nvidia, the AI chip leader, has seen its market value grow by over $1 trillion since January. Intel, which has struggled in recent years, also saw a modest stock boost.
The Semiconductor Industry Association declined to comment.
Meanwhile, global demand for chips is surging. According to World Semiconductor Trade Statistics, sales increased 19.6% over the year ending in June—amplifying the importance of production locality and cost structure.
Policy Shift from Incentives to Punishment
Trump’s latest measure marks a sharp break from the Biden administration’s incentive-driven CHIPS Act, which offered $52 billion in grants, tax breaks, and R&D funding to support domestic chip manufacturing. Biden’s strategy was to attract investment through subsidies and partnerships.
By contrast, Trump is using punitive tariffs as leverage, effectively betting that fear of higher costs will force companies to reshore production—even at the risk of higher consumer prices on phones, televisions, and other electronics.
Critics say this approach could squeeze profits, discourage global partnerships, and increase prices for American consumers.
“There’s one person who can afford to be cavalier about the uncertainty that he’s creating, and that’s Donald Trump,” said Rachel West, a senior fellow at the Century Foundation. “The rest of Americans are already paying the price for that uncertainty.”
What’s Next for Tech and Trade?
The administration has yet to clarify how the tariffs will affect devices already in the pipeline, particularly those manufactured in China and India—key hubs for Apple and other tech brands.
The stakes are high. The global chip market is not only booming, but it’s also critical for national security, prompting both administrations to emphasize semiconductor sovereignty.
Trump’s plan may face legal challenges, as it’s built on a 1977 law that allows emergency powers to address national economic threats.
Former House Speaker Paul Ryan called the tariff plan “whims-based policy,” questioning its legitimacy.
Still, the stock market response was positive, suggesting that investors believe exemptions will shield U.S. tech firms from the worst effects.
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