President Donald Trump stated that semiconductor imports will soon face tariffs, with possible carve-outs for firms like Apple that have pledged significant investment in the U.S. economy.
On Thursday, he noted Tim Cook’s company should be largely protected from import duties, given their promises to boost its U.S. operations, saying, “Tim Cook would be in pretty good shape.”
Trump says companies entering the U.S. or making further investments would be exempt
During a White House dinner with a select group of top technology company leaders, including Cook, the president addressed reporters. He commented, referring to chips and semiconductors, “We’ll be putting a tariff very shortly. You probably are hearing we’ll be putting a fairly substantial tariff, or not that high, but a fairly substantial tariff.”
However, he clarified that businesses entering the U.S. market or expanding their presence would be exempt from import duties. Earlier last month, the American President announced they would implement a 100% tariff on semiconductor imports and even then still made promises to exempt Apple, considering its additional $100 billion investment pledge.
Overall, the tech giant intends to channel $600 billion into domestic manufacturing over the next four years. Moreover, it asserted it would bring a greater share of its supply chain and high-tech manufacturing to the United States under its American Manufacturing Program (AMP), partnering with firms like Corning, Applied Materials, and Texas Instruments. It also announced that Corning will commit a full factory in Kentucky to Apple glass production and increase headcount at the site by 50%.
Nevertheless, Trump claimed that firms making comparable investment pledges to Apple would avoid chip tariffs, though a separate levy will still target electronics products that rely on semiconductors. He had also previously floated the idea of setting tariffs at more than 100%, with potential levels as high as 200%–300%.
As earlier reported by Cryptopolitan, Trump had first given the world an early peek at his phased tariff plans while talking with reporters on Air Force One as he headed to a meeting with Russian President Vladimir Putin in Alaska. He had said that tariffs on steel and semiconductor chips would be implemented in the next two weeks. Trump had not said what the rates would be, but said the initial tariffs would be lower, to enable companies to build up or open U.S. production before higher rates hit.
TSMC is exempt from US chip tariffs
Taiwan Semiconductor Manufacturing Company (TSMC) is also putting about $165 billion into its U.S. manufacturing push in Arizona. Last month, Liu Chin-ching, head of Taiwan’s National Development Council, announced the firm would be spared from the 100% tariff on U.S. chip imports, even as certain Taiwanese firms remain exposed.
Around the same time, Yeo Han-koo, South Korea’s trade minister, told SBS that chips from Samsung Electronics and SK Hynix are exempt from the tariffs thanks to their U.S. investment commitments. Over a dozen large firms have rolled out major U.S. investment commitments since Trump’s 2024 win, with executives visiting him first at Mar-a-Lago and later at the White House.
However, despite possible relief, there is still a broader concern about Trump’s stance on electronics, considering the size of the U.S. consumer tech market. A sweeping tariff package would cover any semiconductor-containing product, including everything from automobiles to small gadgets.
Nonetheless, Billy Leung, a Sydney-based investment strategist at Global X ETFs, previously stated that Apple’s $100 billion pledge and the reduced risk of supply-chain disruption from Trump’s 100% tariff plans have lifted sentiment in both markets and households.
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Source: https://www.cryptopolitan.com/trump-vows-tariffs-on-semiconductor-imports/
