US President Donald Trump announced plans to impose a 100% tariff on imported computer chips and semiconductors, warning tech giants to relocate production to the United States or face steep costs.
Speaking from the Oval Office alongside Apple CEO Tim Cook, Trump stated, “We’ll be putting a tariff of approximately 100% on chips and semiconductors. But if you’re building in the United States of America, there’s no charge.”
The move triggered an early reaction in Asian markets on August 7, with chip-related stocks dipping. However, shares of US-based tech firms like Apple, Nvidia, and Intel saw a rise in extended trading following Trump’s indication that domestically manufacturing companies would be exempt.
The announcement comes months after electronics were temporarily excluded from earlier tariff rounds. Trump’s latest push aims to pressure companies to boost US-based manufacturing—a sharp contrast to the CHIPS and Science Act signed by his predecessor, Joe Biden, which relied on incentives and subsidies.
Apple, already committed to investing $600 billion more in the US, could benefit if its massive iPhone production lines in China and India are spared. Nvidia, with over $1 trillion in market value, and Intel, trying to rebound from losses, also stand to gain if they ramp up domestic production.
Despite potential inflationary risks, Trump is betting that high tariffs will be a stronger motivator than subsidies to bring chip-making back to American soil.
The Semiconductor Industry Association declined to comment on the announcement, while industry analysts remain divided on whether the plan will boost jobs or raise consumer prices.