President Donald Trump Declares 100% Tariff on Imported Semiconductor Chips Unless Manufactured in the US.
On August 6th, US President Donald Trump announced he will impose tariffs up to 100% on all semiconductor chips and products imported into the US, unless these products are manufactured directly on US territory.
In a statement at the Oval Office, Trump emphasized: "A 100% tariff will apply to all imported chips and semiconductor products. However, if companies commit to manufacturing or are building chip production facilities in the US – as many businesses are doing – they will not be subject to tariffs".
The US President also warned that companies that previously committed but later canceled plans to build factories in the US would face cumulative taxes. "We will take note of that. If you change your mind and do not build the factory as promised, taxes will accumulate, and at some point, you will have to pay in full," he said.
This statement is part of a strategy to re-industrialize the United States, aimed at reducing dependence on foreign supply chains in the semiconductor sector – a critical technology industry that determines both national security and the US's global economic position.
Since 2022, the US has implemented the CHIPS and Science Act worth $52.7 billion, encouraging global technology companies to invest in building factories in the US. During President Joe Biden's administration, 5 of the world's top semiconductor companies have announced plans to build chip manufacturing facilities in the US, including major names like Intel, TSMC, Samsung, Micron, and Texas Instruments.
Recently, the world's largest chip foundry – TSMC – confirmed it will produce 2nm chips at its Arizona factory from 2028 to 2030, as part of an investment up to $100 billion. Previously, Apple was also reported to be about to announce a $100 billion investment to expand domestic production, including the American Manufacturing Program, according to sources from Reuters and CNN.
Currently, the US only produces about 12% of global chip production, a significant drop from 40% in 1990. This has led both US political parties to agree on strengthening the "Made in America" policy, especially in strategic sectors like semiconductors, artificial intelligence, and defense.
Trump's tough statement is a further step in his commitment to building a self-reliant economy, boosting domestic production, and protecting American workers' interests. Observers believe this move also aims to create additional pressure on large technology corporations that are weighing between maintaining low costs by manufacturing overseas or meeting the increasingly aggressive domestic production requirements of the US government.
