Trump announces 100 percent tariff on semiconductor imports

US President Donald Trump said the tariff volition not interaction companies if they person already invested successful US facilities.

United States President Donald Trump says helium volition enforce a 100 percent tariff connected foreign-made semiconductors, though exemptions volition beryllium made for companies that person invested successful the US.

“We’ll beryllium putting a tariff connected of astir 100 percent connected chips and semiconductors, but if you’re gathering successful the United States of America, there’s nary charge, adjacent though you’re gathering and you’re not producing yet,” Trump told reporters astatine the Oval Office connected Wednesday evening.

The quality came aft a abstracted announcement that Apple would put $600bn successful the US, but it was not unexpected by US observers.

Trump told CNBC connected Tuesday that helium planned to unveil a caller tariff connected semiconductors “within the adjacent week oregon so” without offering further details.

Details were besides scant astatine the Oval Office astir however and erstwhile the tariffs volition spell into effect, but Asia’s semiconductor powerhouses were speedy to respond astir the imaginable impact.

Taiwan, location of the world’s largest chipmaker TSMC, said that the institution would beryllium exempt from the tariff owed to its existing investments successful the US.

“Because Taiwan’s main exporter is TSMC, which has factories successful the United States, TSMC is exempt,” National Development Council main Liu Chin-ching told the Taiwanese legislature.

In March, TSMC – which counts Apple and Nvidia arsenic clients – said it would summation its US concern to $165bn to grow spot making and probe centres successful Arizona.

A semiconductor wafer displayed astatine Touch Taiwan, an yearly show accumulation successful Taipei, Taiwan, connected April 16, 2025 [Ann Wang/Reuters]

South Korea was besides speedy to extinguish immoderate concerns astir its apical chipmakers, Samsung and SK Hynix, which person besides invested successful facilities successful Texas and Indiana.

Trade envoy Yeo Han-koo said South Korean companies would beryllium exempt from the tariff and that Seoul already faced “favourable” tariffs aft signing a commercialized woody with Washington earlier this year.

TSMC, Samsung and SK Hynix are conscionable immoderate of the overseas tech companies that person invested successful the US since 2022, erstwhile then-President Joe Biden signed the bipartisan CHIPS Act offering billions of dollars successful subsidies and taxation credits to re-shore concern and manufacturing.

Less fortunate is the Philippines, said Dan Lachica, president of Semiconductor and Electronics Industries successful the Philippines Foundation.

He said the tariffs volition beryllium “devastating” due to the fact that semiconductors marque up 70 percent of the Philippines’ exports.

Trump’s latest circular of broad tariffs connected US commercialized partners is owed to spell into effect connected Thursday, but the White House has besides targeted circumstantial industries similar steel, aluminium, automobiles and pharmaceuticals with abstracted tariffs.

Source:

Al Jazeera and quality agencies