President Trump Announces 100% Tariff on Imported Chips
In a move that could redefine global semiconductor supply chains, President Trump has announced a sweeping 100% tariff on all chips imported into the United States. Speaking publicly alongside Apple CEO Tim Cook, Trump outlined the administration’s plan to prioritize domestic chip manufacturing as a matter of national security and economic sovereignty. This decision significantly exceeds prior market expectations, which had anticipated a more moderate 25% to 50% tariff.
The core message is unambiguous: semiconductor firms that manufacture chips outside the United States will face severe financial penalties, while those investing in U.S. soil will be spared. “If you’re building in the U.S., there’s no charge,” Trump declared, making it clear that foreign reliance on chip production will no longer be tolerated without cost. The new policy aims to encourage companies such as TSMC, Samsung, and Micron to expand domestic operations, and indeed, TSMC has already committed over $300 billion to rapidly expand its Arizona-based foundry capacity.
Despite the aggressive stance, the administration is also issuing key exemptions for companies with substantial U.S. investments. Apple and NVIDIA have both been granted exemption from the tariffs, with Apple pledging a historic $600 billion investment in the U.S. over the next four years. The company plans to build an end-to-end supply chain domestically, involving partners such as GlobalWafers America, TSMC, Texas Instruments, and Applied Materials.
Similarly, Samsung Electronics is exempt due to its announced $45 billion investment in Texas, which includes two chip fabrication plants, an R&D center, and a packaging facility scheduled to be completed by 2030. Detail in Reuters South Korean peer SK Hynix also secured an exemption after committing $3.87 billion to build a memory packaging and R&D facility in West Lafayette, Indiana. Details via NIST
This new policy, however, could spell trouble for firms like SMIC, UMC, and Rapidus, which currently lack any meaningful manufacturing footprint in the United States. These companies are now facing an uphill battle to maintain cost competitiveness in the U.S. market under the new tariff regime.
The Trump administration has consistently treated semiconductor production as a pillar of national security. Accusations against Taiwan for intellectual property theft and increasing geopolitical tensions with China have only intensified the urgency for a self-sufficient chip manufacturing base. The administration’s view is that control over chip production is critical to American innovation and defense infrastructure.
As this policy unfolds, it is expected to realign not just the U.S. tech industry but the global semiconductor landscape as well. While the final scope of the tariffs is still being detailed, the message is clear: the United States will not rely on foreign nations for the chips that power its economy and defense.
What are your thoughts on a 100% chip tariff? Will this strengthen U.S. manufacturing or create new challenges for global tech firms? Join the conversation below.
