Trump Unveils 100% Tariff on Imported Chips, Exempts US-Based Manufacturers

By Staff, Agencies

President Donald Trump announced plans to impose a 100% tariff on imported semiconductors, while exempting companies that manufacture or commit to manufacturing in the United States.

The move, part of his broader effort to bring industrial production back to US soil, was unveiled during remarks in the Oval Office on Wednesday, alongside news that Apple would invest an additional $100 billion in its American operations.

“For companies like Apple, which have committed to build in the United States, there will be no charge,” Trump stated.

However, he cautioned that companies attempting to backtrack on their promises would eventually face penalties. “If, for some reason, you say you’re building and you don’t build, then we go back and we add it up... you have to pay, and that’s a guarantee,” he warned.

Despite the strong rhetoric, Trump’s comments do not yet constitute a formal tariff policy, and key details—such as timelines, enforcement mechanisms, and scope—remain uncertain. The announcement has already sparked global concern, drawing swift responses from foreign governments and industry leaders.

In Seoul, South Korea’s top trade envoy said leading chipmakers Samsung Electronics and SK Hynix would be exempt from the new tariff due to a bilateral trade agreement. “South Korea will enjoy the most favorable levies under the deal,” he added.

In contrast, the reaction in Southeast Asia was more alarmed. Dan Lachica, president of the Philippine semiconductor industry, warned that Trump’s plan would be “devastating” to his country.

Malaysia’s trade minister, Tengku Zafrul Aziz, echoed those concerns in parliament, warning that higher tariffs could render Malaysian exports uncompetitive in the US market.

Not all companies are expected to be affected equally. Taiwanese chip giant TSMC, which operates plants in the US, is likely to avoid penalties, as are its major clients like Nvidia.

Nvidia has also pledged to invest hundreds of billions of dollars into US chip production over the next four years. While the company declined to comment, the move is seen as a clear strategy to align with evolving US policy.

Analysts say the policy will favor large tech firms that have the capital to build domestically. “Large, cash-rich companies that can afford to build in America will be the ones to benefit the most. It’s survival of the biggest,” said Brian Jacobsen, chief economist at Annex Wealth Management.

This policy follows the $52.7 billion semiconductor subsidy program passed by Congress in 2022, which successfully attracted five major chip firms to build advanced factories in the US.

According to the Commerce Department, only 12% of global chip production occurred in the US last year, down from 40% in 1990.

“There’s so much serious investment in the United States in chip production that much of the sector will be exempt,” said Martin Chorzempa of the Peterson Institute.

He noted, however, that Chinese firms like SMIC and Huawei are unlikely to benefit, though many of their chips enter the US embedded in Chinese-assembled devices. “If these tariffs were applied without a component tariff, it might not make much difference,” he said.

Meanwhile, global partners are pushing for clarity. The EU says it has secured a uniform 15% tariff rate for key exports including chips, while Japan claims the US promised not to impose higher chip tariffs than those applied to other partners.

Asian chipmakers with significant US operations saw their stock prices rise following the announcement. TSMC climbed 4.4%, Samsung gained 2%, and GlobalWafers—owner of a Texas plant—jumped 10%. While Samsung and TSMC declined to comment, GlobalWafers said it had already taken steps to reduce costs and remained confident in its competitiveness.