Trump imposes full tariff on semiconductor imports, citing economic concerns.

United States President Donald Trump has announced an initiative to impose a 100 percent tariff on foreign-made semiconductors, although companies that have already made investments in the United States will be exempt from this new policy. This announcement was made during a press briefing at the Oval Office, where Trump emphasized the administration’s commitment to bolstering domestic production.

The president stated, “We’ll be putting a tariff on approximately 100 percent on chips and semiconductors, but if you’re building in the United States of America, there’s no charge, even though you’re building and you’re not producing yet.” The timing of this announcement coincided with Apple’s commitment to invest 0 billion in its U.S. operations, a move that was largely anticipated by industry analysts.

Trump had previously hinted at forthcoming tariffs during an interview with CNBC and confirmed that the specifics would be revealed soon, although details regarding the implementation timeline remain unclear. The announcement has prompted swift reactions from major players in the semiconductor industry, particularly in Asia, which has been a global leader in chip manufacturing.

Taiwan’s semiconductor giant TSMC, known as the world’s largest chipmaker, has confirmed that it will be exempt from the new tariff due to its significant investments in the U.S. TSMC has plans to expand its manufacturing capabilities and research facilities, particularly in Arizona, with an increased investment commitment of 5 billion. Taiwanese National Development Council chief Liu Chin-ching articulated confidence in TSMC’s role in the U.S. market, underscoring the strategic partnerships formed through these investments.

Similarly, South Korean tech conglomerates, including Samsung and SK Hynix, have ensured that they too will not be affected by the tariffs, owing to their investments in Texas and Indiana. South Korea’s trade envoy Yeo Han-koo affirmed the existing favorable trade conditions following a recent agreement with the U.S., which protects these companies.

However, the situation presents potential challenges for the Philippines, where semiconductors account for a substantial 70 percent of the country’s exports. Industry representatives have voiced concerns that these tariffs could have detrimental effects on their economy.

This latest development in U.S. trade policy reflects a broader strategy aimed at enhancing local manufacturing and securing positions in critical technological sectors, where cooperation and investments from multiple nations continue to play a vital role. As the administration’s tariffs prepare to go into effect, it remains essential for stakeholders to navigate the complexities of international trade and domestic growth.

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