Trump Threatens 100% Tariff on Chips, With a Big Caveat
President Trump threatened on Wednesday to impose a 100 percent tariff on foreign semiconductors, in an effort to bring supply chains for electronics back to the United States.
The tariff, which could be unveiled next week, would apply to all countries and companies, unless businesses made a commitment to invest and build in the United States. Mr. Trump pointed to Apple, which announced a $100 billion investment in U.S. manufacturers on Wednesday, as an example of a company that would be spared the levies.
“If you’re building, there will be no charge,” Mr. Trump said. He added that companies that did not fulfill investment promises would be held accountable with fines. “That’s a big statement, and I think the chip companies are all coming back home.”
Should Mr. Trump follow through on his promise, it would be a huge relief for tech companies that had been anxiously anticipating an announcement on semiconductor tariffs. Nvidia, Taiwan Semiconductor Manufacturing Company, Micron and other companies could benefit by avoiding huge fees on their businesses because in recent months they have pledged to invest in the United States.
