President Donald Trump announced plans Wednesday to impose a 100% tariff on all imported semiconductors, citing the need to increase domestic chip production. “If you’re building in the United States or have committed to build in the United States, there will be no charge,” Trump said during a White House appearance with Apple CEO Tim Cook.
Trump has already imposed tariffs on imports such as automobiles and metals, and has threatened additional ones on pharmaceuticals. Experts warn the semiconductor tariff could lead to higher consumer prices for electronics, appliances, and vehicles, as the United States only manufactures about 12% of the world’s chips.
The Semiconductor Industry Association and other analysts have raised concerns about the timeline for reshoring production. The U.S. imported over $591 billion in electronics in 2023, according to the U.S. International Trade Commission.
Earlier this year, the administration launched a national security review of chip imports, laying groundwork for the tariff decision. Trump has criticized the CHIPS and Science Act passed in 2022, arguing tariffs are more effective in forcing companies to relocate production to the U.S.
Cook also announced Apple will invest an additional $100 billion in U.S. manufacturing over four years.
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