Trump announces 100% tariff on semiconductors, exempts firms shifting production to US

Trump has announced 100 percent tariff on semiconductors. (Photo/AP)

US President Donald Trump has said his administration would impose a 100 percent tariff on imported semiconductors, while exempting companies relocating their production to the United States.

"We’re going to be putting a very large tariff on chips and semiconductors," Trump told reporters at the White House on Wednesday.

"But if you’re building in the United States of America, there’s no charge."

The president made the announcement alongside Apple CEO Tim Cook, who revealed the company would invest $100 billion in a new US manufacturing initiative.

The plan includes a Kentucky-based facility dedicated to glass production by Corning Inc., as well as expanded partnerships with Applied Materials and Texas Instruments.

Trump framed the tariff as a win for American industry and consumers.

"Even though you’re building and not producing yet, if you’ve committed to build here, there will be no charge," he said.

Tariffs pressure

Apple’s move comes amid intensifying tariff threats that have rattled companies with global supply chains.

Most iPhones sold in the US are assembled in India, which is now facing a two-part 50 percent tariff under Trump’s broader trade crackdown.

Vietnam, where Apple manufactures other key products, has already been hit with a 20 percent.

Cook’s meeting with Trump marked a continuation of the company’s effort to secure tariff exemptions.

Earlier this year, the president warned Apple it could face tariffs of at least 25 percent if it did not bring iPhone production to the US.

Cook responded by highlighting US-made components and promised a deeper shift toward domestic production.

"Look, he’s not making this kind of an investment anywhere in the world, not even close," Trump said.

"He’s coming back. I mean, Apple’s coming back to America."

The new 100-billion-dollar pledge adds to Apple’s previous commitment to invest 500-billion-dollar over four years in the US, bringing its total planned investment to 600-billion-dollar.

Projects include a new server facility in Houston, a supplier academy in Michigan, and expanded domestic spending across Apple’s supply network.

Still, analysts caution that many corporate investment announcements made since Trump’s 2024 election win may not fully materialise.

Trump said the administration could unveil further tariffs next week on any imported product containing semiconductors — a sweeping measure likely to impact multiple industries.

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Source: TRT