US President Donald Trump has announced a 100% tariff on all imported computer chips and semiconductors, in a move aimed at boosting domestic manufacturing. However, companies that build or commit to building semiconductor production facilities within the United States will be exempt from the new tax.
Trump warned that if companies fail to meet their investment pledges, they would be charged retroactively. “If, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date; you have to pay, and that’s a guarantee,” he said.
Trump announced the decision on August 6 during a press conference at the Oval Office, where Apple CEO Tim Cook joined him. The move will likely raise the cost of electronics, cars, household appliances, and other products that rely on semiconductors.
Apple Commits $100Bn in Response to the Tariff on Semiconductors
To avoid the steep tariffs, Apple has pledged an additional $100 billion investment in US manufacturing. This brings Apple’s total commitment to $600 billion. As part of the new investment, Apple plans to expand partnerships with companies like Corning Inc., Texas Instruments, and Applied Materials. Corning will dedicate an entire factory in Kentucky to produce glass for Apple, expanding its workforce in the state by 50%.
Trump praised Apple’s move and said companies showing similar dedication to building in the US would not be affected by the tariff. “If you’re building in the United States, there is no charge,” Trump said.
Other Tech Giants’ Investment in US Semiconductors
Since Trump’s return to the White House in January 2025, major tech firms like Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia, and Samsung have announced significant US investments. TSMC is exempt from the new tariffs because it has set up plants in the US, said Taiwan’s National Development Council Minister Liu Chin-ching after the shares of the company fell 5% due to the tariff announcement.
Similarly, South Korea’s Samsung and SK Hynix will avoid the new levy because both companies have pledged to invest in US-based production.
Shares of major tech companies responded positively to the news with Apple’s stock rising 5% during the day and another 3% in after-hours trading. Nvidia and Intel also saw gains.
Asia in the Crosshairs
The tariff announcement targets countries like India, China and East Asia, which serve as major production hubs for electronic goods. Apple currently assembles most iPhones sold in the US in India, while it manufactures products like iPads, MacBooks, and Apple Watches primarily in Vietnam, a country that recently faced a separate 20% tariff.
In addition to the semiconductor tariff, Trump has also imposed a 50% tariff on Indian goods, citing the nation’s continued oil trade with Russia. The government has already implemented the first phase of the new…
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
