Donald Trump has announced plans to impose a 100% tariff on imported computer chips, which is expected to increase prices for a variety of goods, including electronics, cars, and home appliances. The move is intended to encourage domestic production of chips and semiconductors.
Speaking from the Oval Office during a meeting with Apple CEO Tim Cook, Trump stated that companies producing chips in the US would not face this import tax. The shortage of chips during the Covid-19 pandemic was a contributing factor to price increases for vehicles and overall inflation.
The meeting with Cook was aimed at discussing an agreement for Apple to invest $100 billion in US manufacturing over the next four years, in addition to the $500 billion the company has already committed to investing domestically. This new investment would bring Apple’s total domestic investment to $600 billion.
Cook has previously met with Trump to discuss increasing US manufacturing, as Apple currently has most of its products made abroad. For instance, around 90% of iPhones are assembled in China.
Nvidia, one of the biggest chip manufacturers in the US, might be exempt from the tariff due to its US-based manufacturing facilities. Both Nvidia and chipmaker Intel were unreachable for immediate comment.
Despite the global demand for computer chips, which saw a 19.6% increase in sales for the year ending in June, Trump is choosing a more aggressive approach to incentivize domestic production, rather than relying on incentives and support as proposed by Joe Biden’s Chips and Science Act of 2022.
The tariff on foreign computer chips is scheduled to be introduced next week and will apply to all countries and companies.
Source: https://www.theguardian.com/us-news/2025/aug/06/trump-tariffs-chips-semiconductors
