President Donald Trump announced on Thursday that his administration will introduce tariffs on semiconductor imports from companies that fail to move production to the US.
The declaration came ahead of a high-profile dinner with technology industry leaders, signalling his intent to tighten pressure on global firms, reported Reuters.
Tariffs at the Centre of Trade Policy
Since returning to office in January, Trump has leaned heavily on tariffs as a tool of foreign policy. His use of duties has unsettled trading partners, triggered volatility in financial markets, and contributed to wider global economic uncertainty.
Speaking to reporters, Trump stated: “Yeah, I have discussed it with the people here. Chips and semiconductors – we will be putting tariffs on companies that aren’t coming in. We will be putting a tariff very shortly.” He stopped short of specifying the rate or exact timing.
He added that the levies would be “fairly substantial” but clarified that companies building or planning to establish facilities in the US would not face tariffs. “If they are not coming in, there is a tariff,” he reiterated.
Apple and Tech Giants in Focus
During the dinner, Trump singled out Apple CEO Tim Cook, saying: “Like, I would say Tim Cook would be in pretty good shape.” Apple has recently pledged to raise its US investment to $600 billion over the next four years, a move that aligns it with Trump’s push for domestic manufacturing.
Last month, Trump indicated that the administration was considering a 100 per cent tariff on imported semiconductors. However, exemptions would apply to firms already producing in the US or those committed to doing so.
Taiwan’s TSMC and South Korea’s Samsung Electronics and SK Hynix have already announced substantial investments in semiconductor facilities in the US, highlighting how global players are responding to Washington’s stance.
Legal Challenges Loom
Trump’s reliance on tariffs has faced resistance in US courts. Many of his existing levies, implemented under a 1977 emergency law, were recently overturned by a lower court. His administration has petitioned the Supreme Court to preserve the sweeping tariff powers, underscoring the legal and political battles surrounding his economic strategy.
For now, the planned semiconductor tariffs underline Trump’s determination to reshape supply chains in favour of domestic production, even as critics warn of further disruption to global trade and technology markets.
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