Trump Announces 100% Tariff on Chips and Semiconductors—Exemptions for U.S. Manufacturing

On August 6 (local time), U.S. President Trump declared that the United States will impose tariffs of approximately 100 percent on chips and semiconductors, with an exception for companies that manufacture domestically. The announcement was reported by CCTV News and further emphasized by Trump’s remarks that no fees would apply to products made within the United States.
Industry analysts interpret this move as a strategic escalation in Trump’s efforts to pressure companies into relocating production to American soil. However, the specifics of the exemption policy—such as the proportion of domestic manufacturing required to qualify—have yet to be clarified.

The statement was made during a press briefing held in the Oval Office, where Trump appeared alongside Apple CEO Tim Cook. Cook announced that Apple will invest an additional $100 billion in U.S.-based research and manufacturing over the next four years, supplementing its previously pledged $500 billion.

Trump reiterated that the tariffs would be substantial, but companies like Apple that build or commit to building facilities in the United States would be exempt from such charges. He emphasized that the policy is straightforward: chips and semiconductors will be subject to tariffs of around 100 percent unless they are produced domestically.

The president had previously indicated that these tariffs could be implemented as early as the following week. Given that chips and semiconductors are integral components across virtually all industries, the proposed tariffs could lead to increased prices for a wide range of consumer goods, including smartphones, laptops, and household electronics.

Several leading semiconductor manufacturers have already pledged to expand their U.S. operations. Apple joins companies such as TSMC, NVIDIA, and GlobalFoundries in committing to domestic production. According to the Semiconductor Industry Association, more than 130 investment projects have been announced in the United States since 2020, with a combined value of $600 billion. TSMC has committed $165 billion to U.S. manufacturing initiatives. In April, NVIDIA revealed plans to invest $500 billion over four years to develop artificial intelligence infrastructure in the United States. In June, GlobalFoundries announced a $16 billion investment to expand its semiconductor facilities in New York and Vermont. That same month, Texas Instruments disclosed a $60 billion plan to establish seven new chip manufacturing plants across the country.

Trump made it clear that companies failing to honor their commitments to build in the United States would once again be subject to tariffs and retaliatory measures. This latest initiative reflects Trump’s broader campaign to revitalize American manufacturing. Tariffs have already been imposed on automobiles, copper, steel, and aluminum, and the president has threatened similar measures on imported pharmaceuticals. Nonetheless, experts caution that such policies may hinder consumer access to these goods, as rebuilding domestic supply chains is a complex and time-consuming process.