President Donald Trump unveiled a new bold economic step: a 100% tariff rate on all semiconductors imported from abroad, according to Mint. This forceful step, higher than the earlier suggested 25%, is intended to cut USA dependence on Asian chip makers.
Trump tariffs will not apply to companies that manufacture chips on US soil. “If you’re building in the United States of America, there’s no charge,” the US president said. Hence, making it clear that this policy is designed to encourage domestic manufacturing rather than purely punish foreign imports.
In a joint announcement, Apple CEO Tim Cook accompanied Trump to the Oval Office to announce that Apple is increasing its US investment goal from $500 billion to $600 billion. The initiative is bolstered by new partnerships with ten US-based providers and a continued focus on American job creation.
One of the standout features of Apple's new investment strategy is a huge new facility for Corning in Kentucky. This factory will manufacture the glass that goes into every iPhone and Apple Watch sold worldwide. The tech giant also announced a shared innovation center with Corning in the same state.
Even with these investments, Apple CEO confirmed that assembling the iPhones completely overseas will continue for the time being. However, he did go on to indicate that ‘a ton’ of Apple components are being made domestically already. So, the company might look at more reshoring efforts down the line.
The new Trump tariff might make it more difficult to conduct business for semiconductor industry leaders such as AMD, Nvidia, Intel, and Qualcomm. These companies depend strongly on Taiwan's TSMC to make their chips. TSMC, which is constructing six new fabrication plants in Arizona, has threatened that these kinds of policies may affect future investments in the US.
According to reports, Trump tariff levy may start from next week. The US President showed urgency in his statement. The announcement injects new pressure into the global technology supply chain and may have spillover effects for the electronics sector.
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