Rufus Okoro
The President of the United States (US), Donald Trump disclosed on 6th August 2025 that he planned to impose 100 percent tariffs on tens of billions of dollars of imported semiconductors used in consumer electronics and other products, but indicated he would not charge companies that commit to making chips in the US.
“We will be putting a tariff of approximately 100 percent on chips and semiconductors,” Trump said at a White House event where Apple CEO Tim Cook announced plans to boost the company’s investment in the United States by $100 billion.
Trump stated that companies that make semiconductors in the US would not face the levies. However, it was not entirely clear if he meant he would exclude chips that those companies import from abroad.
“If you have made a commitment to build or are in the process of building, as many are, there is no tariff. If for some reasons you say you are building and you don’t build, we go back and add it up, it accumulates, and we will charge you at a later date. You have to pay,” Trump said.
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A White House official, granted anonymity to discuss the issue, said additional details would come in the official announcement.
“But the point he is clearly making is that the tariffs will be nuanced and phased in to reshore manufacturing while minimizing supply chain disruptions,” the official said.
The US reportedly imported more than $60 billion worth of semiconductors in 2024, including more than $50 billion from Asia.
Leading suppliers include Taiwan, Malaysia, Vietnam, the European Union, Thailand, South Korea, and Japan.
China exported about $2 billion worth of chips to the US last year. It is a significant source of chips used in automotive manufacturing sector.
The EU, as part of its recent trade deal with Trump, secured a commitment that it would only face a 15 percent tariff on semiconductors. South Korea and Japan appear to have won a similar commitment as well.
Trump’s announcement stems from an investigation that Commerce Secretary, Howard Lutnick launched on 1st April 2025 under Section 232 of the 1962 Trade Expansion Act. That legislation empowers the president to restrict imports deemed a risk to national security.
It's noteworthy that Taiwan alone shipped about $12 billion worth of chips to the US just last year, barely edging out Malaysia as the top foreign supplier.
