Trump: 100% Tariffs Will Be Imposed on Chips and Semiconductors, Except for "Made in the USA"!

US President Trump said on Wednesday (August 6, EST) that the United States will impose tariffs of approximately 100% on chips and semiconductors, but will not target companies that "build factories in the United States."

He specifically emphasized that if manufactured in the United States, no fees will be charged.

Analysts point out that the announcement of new tariffs on specific industries indicates that Trump is increasing pressure on companies to produce products in the United States. However, the specific details of the plan, such as how much production a company must produce in the United States to qualify for tariff exemptions, are still unclear.

That afternoon, Trump made the announcement at a press conference in the Oval Office with Apple CEO Tim Cook. Cook announced that Apple will invest an additional $100 billion in US research and manufacturing over the next four years, on top of its previously pledged $500 billion.

"We're going to be putting very high tariffs on chips and semiconductors. But the good news for companies like Apple is, if you build a factory in the United States, or commit to build a factory in the United States, absolutely, there will be no fees," Trump said.

"In other words, we're going to be putting a tariff of about 100% on chips and semiconductors. But if you build a factory in the United States, there will be no fees," he said.

Trump had previously said tariffs on chips and semiconductors could be introduced as early as next week.

Chips and semiconductors have become critical components in nearly every industry. Additional tariffs could drive up prices for everything from smartphones and laptops to home electronics.

In addition to Apple, several top chipmakers, including TSMC, Nvidia, and GlobalFoundries, have already committed to producing some products in the United States. And according to the Semiconductor Industry Association, the United States has announced more than 130 investment projects totaling $600 billion since 2020.

Specifically, TSMC has pledged to invest $165 billion in US manufacturing; Nvidia announced in April that it plans to invest $500 billion in the US over the next four years to build AI infrastructure; in June, GlobalFoundries pledged $16 billion to expand its semiconductor manufacturing facilities in New York and Vermont; and also in June, Texas Instruments announced a $60 billion investment to add seven chip manufacturing plants in the US.

According to Trump, if a company promises to build a US factory but fails to do so, it will face tariffs and retaliatory tariffs again.

Trump has gone to great lengths to bring manufacturing back to the US. He has already imposed tariffs on autos, copper, steel, and aluminum. He has also threatened to impose high tariffs on imported pharmaceuticals. However, experts warn that import tariffs will make it more difficult for Americans to purchase these products because rebuilding supply chains will take time.