President Donald Trump announced Wednesday that he plans to impose a 100% tariff on imports of semiconductors and chips, exempting only those companies that are “building in the United States” or have committed to doing so. Speaking from the Oval Office, Trump emphasized the administration’s focus on boosting domestic manufacturing and reducing reliance on foreign supply chains. “We’re going to be putting a very large tariff on chips and semiconductors,” he said. “But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.”
While the exact details regarding the tariff exemption—such as the minimum level of U.S. manufacturing required—have not yet been made clear, the announcement underscores the administration’s aggressive approach to incentivizing American production in a critical technology sector. Semiconductors and chips have become essential components in a wide range of industries, from consumer electronics to automotive and defense, making the stakes especially high.
Trump’s announcement follows Apple’s recent commitment to invest an additional $100 billion in U.S. operations over the next four years, adding to a previous pledge of $500 billion. The tech giant’s investment includes plans for new manufacturing facilities and supply chain expansions. Other leading chip manufacturers have also responded to mounting pressure to increase U.S.-based production. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, has pledged to invest $165 billion in American manufacturing projects. Nvidia, one of the most valuable tech companies globally, announced plans in April to spend $500 billion on AI infrastructure within the U.S. over the next four years.
GlobalFoundries has committed $16 billion to expand its semiconductor manufacturing capacity across New York and Vermont facilities, while Texas Instruments revealed a $60 billion investment to upgrade seven chip fabrication plants across the country. These investments collectively reflect more than 130 projects totaling approximately $600 billion in U.S. semiconductor industry spending since 2020, according to the Semiconductor Industry Association.
The tariffs come amid ongoing concerns about supply chain vulnerabilities, national security, and the strategic importance of semiconductor manufacturing. Trump’s administration is using tariffs as a lever to accelerate reshoring efforts and encourage companies to build critical components domestically, thereby creating jobs and strengthening U.S. technological independence. However, questions remain about how the tariff will be implemented, particularly how the administration will determine what qualifies as “building in the United States” and how much manufacturing activity is necessary to avoid the tariff.
Industry analysts are watching closely, as the tariff could significantly reshape the semiconductor landscape, influencing decisions on investment, production, and global trade partnerships. The move also adds pressure on companies to accelerate their U.S. manufacturing plans to avoid the steep duties, potentially altering the competitive dynamics within the tech and chipmaking sectors.
Trump’s latest tariff announcement marks a major escalation in his trade policy and signals the administration’s determination to prioritize American industry in an era of global economic competition.
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