Trump vows 100% tariff on chips, unless companies are building in the U.S.

In a bold move, President Donald Trump announced on Wednesday that he plans to implement a staggering 100% tariff on imported semiconductors and chips. However, this tariff will not apply to companies that are actively manufacturing within the United States. This announcement marks a significant escalation in Trump’s strategy to encourage businesses to produce their goods domestically. While the specifics of the plan remain vague, particularly regarding the level of U.S. production required to qualify for the tariff exemption, Trump emphasized the urgency of the matter. He hinted that these tariffs could take effect as early as next week. Speaking from the Oval Office, he stated, "We're going to be putting a very large tariff on chips and semiconductors. 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." Trump's remarks followed Apple's announcement of a substantial $100 billion investment in the U.S. over the next four years, complementing an already pledged $500 billion. This commitment aligns with a broader trend, as numerous leading chip manufacturers, including Taiwan Semiconductor, Nvidia, and GlobalFoundries, have already dedicated resources to U.S. production. According to the Semiconductor Industry Association, over 130 projects totaling $600 billion have been initiated in the U.S. since 2020. Notably, TSMC, the world’s largest contract chip manufacturer, has committed to investing $165 billion in U.S. manufacturing. Additionally, Nvidia recently declared plans to invest $500 billion in AI infrastructure in the U.S. over the next four years, while GlobalFoundries announced a $16 billion expansion of its semiconductor facilities in New York and Vermont. Texas Instruments also revealed a significant $60 billion investment in seven chip fabs across the U.S., with a client roster that includes major companies like Apple, Ford, Medtronic, Nvidia, and SpaceX.