Trump Announces 100% Tariff on Imported Chips

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President Donald Trump has confirmed that a 100% tariff will be introduced on imported semiconductors, as part of a broader strategy to boost domestic manufacturing. The measure will apply to chips manufactured overseas but includes exemptions for companies producing or planning to produce within the United States.

Trump’s announcement was made during a press event on Wednesday, where he linked the new tariff to his long-standing policy of reshoring key industries. He emphasized the need to reduce reliance on foreign semiconductor supply chains, describing the new tariff as a vital step in safeguarding U.S. technological independence.

Notably, Trump confirmed that the tariffs will not affect firms that have established domestic production facilities or committed to building them in the near future. This carve-out is intended to encourage foreign and domestic chipmakers to invest in U.S.-based infrastructure.

The semiconductor industry has been a key focus of global trade tensions in recent years, with both the U.S. and China viewing control over advanced chip production as a matter of national security. Trump’s move follows a pattern of trade measures that aim to limit foreign technological influence while bolstering domestic capabilities.

Critics of the policy argue that such tariffs may lead to higher costs for electronics and delay supply chain recovery. However, supporters believe the long-term benefits of reduced dependence on overseas manufacturing outweigh the short-term challenges.

The announcement comes at a time when semiconductor demand is resurging, with global supply chains still recovering from disruptions seen during the pandemic and ongoing geopolitical tensions.