President Trump announced Friday that he plans to impose tariffs on semiconductor imports in the coming weeks as part of a broader push to expand his tariff agenda across multiple sectors.
“I’ll be setting tariffs next week and the week after on … chips — chips and semiconductors,” Trump told reporters. Previously, he had suggested tariffs around 100%, but on Friday he hinted at even higher rates, saying they could reach “200%, 300%.” The president also indicated that pharmaceutical imports would face duties in the near future.
Economic data is beginning to show the impact of Trump’s tariffs. Wholesale inflation surged in July at the fastest pace in roughly three years, surprising economists and market watchers. While earlier tariffs had minimal visible effect on the economy, analysts expect the influence to grow over time, potentially showing up in next month’s Consumer Price Index (CPI) after this week’s higher-than-expected Producer Price Index (PPI) reading.
Despite these developments, U.S. stock markets remain resilient. Major indexes hit record highs this week, reflecting investor adaptation to the tariff environment. Tariffs have generated billions in revenue for the government, though economists note that some of this comes via higher prices for consumers.
On the trade negotiations front, Trump extended the tariff truce with China by 90 days through an executive order, postponing talks until November. Average U.S. tariffs on Chinese goods currently sit around 55%. Earlier this month, Trump introduced “reciprocal” tariffs targeting dozens of U.S. trade partners, with further negotiations expected with Canada, Mexico, and China in the months ahead.
The tariffs are also facing legal challenges. Several cases are pending in federal courts, including one appeals court review in July that could either nullify or uphold the duties at any time.
Shares of semiconductor leaders Nvidia (NVDA) and Advanced Micro Devices (AMD) fell sharply Friday after President Trump said new tariffs on chips could be imposed within the next two weeks.
The surprise announcement rattled the tech sector, with Nvidia declining more than 1.3% and AMD dropping over 2% in early trading.
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