Trump’s 100% Tariff on Semiconductor Chips Could Raise Prices of Electronics and More

US President Donald Trump has announced plans to impose a 100% tariff on semiconductor chips imported into the United States, a move that could significantly increase the prices of electronic products, home appliances, automobiles, and other digital devices reliant on these components. However, this tariff will exempt companies that have committed to manufacturing chips in the US or are already in the process of doing so.

Speaking from the Oval Office, Trump emphasized that if a company claims to be manufacturing in the US but fails to do so, tariffs will accumulate and be imposed later, ensuring compliance. This policy aims to encourage domestic production of semiconductor chips, crucial to the digital economy.

Major chip manufacturers like Taiwanese firm TSMC, which has factories in the US, including producing chips for customers such as Nvidia, are expected to be exempted from these tariffs. Nvidia itself has announced plans to invest hundreds of billions of dollars over the next four years to build chip manufacturing capacity in the US. This aligns with similar commitments from companies like Apple and other tech giants, which have pledged large investments in American manufacturing.

Industry experts suggest that the tariff could lead to higher costs for semiconductor-dependent products, but companies able to shift or expand production to the US will benefit from exemptions. The full impact of the tariff depends on the final implementation details, including qualifying criteria for exemptions and the timeline.

In summary, while the 100% tariff threatens to raise prices across a broad range of tech-enabled products, it also incentivizes major players to boost domestic chip manufacturing, potentially reshaping global supply chains and reducing reliance on imports.

This development reflects ongoing efforts by the US government to strengthen its semiconductor industry and ensure supply chain resilience in a technology-dependent world.