President Donald Trump has announced a sweeping 100% tariff on imported semiconductors and microchips—unless companies are actively manufacturing in the United States.
The move, unveiled during an Oval Office event with Apple CEO Tim Cook, is aimed at turbocharging domestic production in a sector critical to everything from smartphones to defence systems.
Trump’s vow comes on the heels of Apple’s pledge to invest an additional $100 billion in U.S. operations over the next four years.
While the tariff exemption criteria remain vague, Trump emphasised that firms ‘committed to build in the United States’ would be spared the levy.
The announcement adds pressure to global chipmakers like Taiwan Semiconductor (TSMC), Nvidia, and GlobalFoundries, many of which have already initiated U.S. manufacturing projects.
According to the Semiconductor Industry Association, over 130 U.S.-based initiatives totalling $600 billion have been announced since 2020.
Critics warn the tariffs could disrupt global supply chains and raise costs for consumers, while supporters argue it’s a bold step toward tech sovereignty.
With AI, automotive, and defence sectors increasingly reliant on chips, the stakes couldn’t be higher.
Whether this tariff threat becomes a turning point or a trade war flashpoint remains to be seen.
Trump has a habit of unravelling as much as he ‘ravels’ – time will tell with this tariff too.