Trump announced a 100% tariff on chips for companies without investment in the USA

• Trump announced a 100% tariff on chips for companies without investment in the USA.
• Apple announced an investment of $100 billion in manufacturing in the USA.
• Chip manufacturers can avoid the tariff if they have a commitment to manufacturing in the USA.

Washington (AP) — President of the USA Donald Trump announced the introduction of a 100% tariff on chips and semiconductor manufacturers. This decision, announced during a press conference with Apple’s CEO, Tim Cook, provides important exemptions for companies that invest in manufacturing in the USA.

Trump stated: "We will impose a large tariff on chips and semiconductors, but a good new for companies like Apple is that if you manufacture in the United States or commit to manufacturing without question in the USA, the tariff will not apply." He emphasized that even a commitment to invest in American manufacturing could be sufficient to avoid the tariff.

This move comes after Trump lifted most tariffs on electronic goods that were imposed earlier. According to reports, major tech companies have already committed to invest nearly $1.5 trillion in the USA since Trump returned to the White House in January.

Furthermore, Apple announced an additional investment of $100 billion in manufacturing in the USA. This coincided with a 5% increase in the company’s stock in regular trading and another 3% in after-hours sessions.

Nonetheless, it remains unclear how the same companies will be affected by new tariffs, especially since many large chip manufacturers already have commitments regarding manufacturing in the USA. For instance, TSMC, which produces most of the advanced chips, announced an investment of $100 billion in American manufacturing.

The situation with tariffs also raises concerns about potential price increases on electronics, especially since the cost of chips produced in the USA could be 5-20% higher than imported ones.

The introduction of new tariffs Trump justified by the necessity to stimulate national manufacturing, regardless of the risks of reduced corporate profits and increased prices on consumer goods.

This approach contrasts with the plans of President Joe Biden’s administration, which anticipates financial support for new factories for chip manufacturing in the USA, something Trump has previously opposed.

Tags: USA/Economy/Technology