Trump Announces 100% Tariffs on Imported Chips Exempting US Builders

President Donald Trump has announced a 100% tariff on imported computer chips and semiconductors to incentivize companies to manufacture these components within the United States. The tariff exempts companies that are already producing or have committed to producing chips stateside, a policy that benefits major players like Apple, Nvidia, and Intel, who have increased investments in American infrastructure. Apple CEO Tim Cook joined Trump in the Oval Office to announce an additional $100 billion investment in U.S. manufacturing. While this move aims to strengthen domestic production, critics warn it may raise consumer prices and contrasts with the Biden administration’s approach of encouraging chip manufacturing through financial incentives rather than tariffs. The tariffs could lead to increased costs for devices such as smartphones and cars, especially if companies like TSMC relocate production to the U.S., potentially increasing chip costs by about 20%. Overall, the policy reflects a push for reshoring semiconductor production to reduce reliance on foreign imports.