Former U.S. President Donald Trump has announced plans to impose a 100% tariff on all foreign-made computer chips and semiconductors, a move expected to raise prices on electronics, vehicles, appliances, and other tech-driven products. However, chipmakers manufacturing within the United States will be exempt from the new levy.
Trump emphasized that the policy aims to boost domestic manufacturing and reduce dependence on foreign supply chains. “If you’re building in the United States of America, there’s no charge,” he said, reinforcing the strategy of penalizing imports to incentivize local production.
The plan spares major companies that have manufacturing operations within the U.S., including Apple, which has committed to investing a total of $600 billion in domestic production over the next four years. Other major chipmakers with U.S.-based facilities, such as Nvidia, are also expected to be exempt.
The proposed tariff is likely to impact Asian countries heavily reliant on semiconductor exports, especially the Philippines, where about 70% of exports are semiconductors. Critics warn the move could disrupt global supply chains and hike prices for key consumer goods like smartphones and TVs.
Unlike earlier policies that offered funding and tax breaks to encourage chip production, Trump’s approach relies on tariff pressure to force industrial shifts. The formal announcement of the new 100% tariff is expected next week, with implementation to follow shortly after.
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