Trump says there will be a 100% tariff on all semiconductors entering the US

U.S. President Donald Trump announced Wednesday that he will implement a 100% tariff on imported computer chips and semiconductors — a move likely to raise prices on electronics, cars, appliances, and other digital-era essentials.

“We’ll be putting a tariff on of approximately 100 per cent on chips and semiconductors,” Trump said during an Oval Office meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”

Trump emphasized that companies manufacturing chips domestically will be exempt from the tariff. During the COVID-19 pandemic, a global chip shortage drove up car prices and contributed to broader inflation.

Demand for chips has surged globally, with sales up 19.6% year-over-year through June, according to the World Semiconductor Trade Statistics organization.

The tariff threat represents a sharp shift from existing efforts to expand domestic chip production. Instead of financial incentives, Trump is opting for a pressure-based strategy, wagering that steeper import costs will compel companies to relocate manufacturing to the U.S. — even at the risk of higher prices for phones, TVs, and refrigerators and tighter corporate margins.

By contrast, the CHIPS and Science Act signed into law in 2022 under President Joe Biden offered over $50 billion in funding, tax credits, and workforce development to boost domestic chip production — an incentive-based model that Trump has repeatedly criticized.