US President Donald Trump announced that the United States will impose a “fairly substantial tariff” on computer chips imported into the country, speaking during a White House dinner with top technology executives.
Trump reiterated his warning that semiconductor firms that do not relocate production to the US would face tariffs, noting that the administration is prepared to move forward with such measures.
“Yeah, I have discussed it with the people here. Chips and semiconductors, we will be putting tariffs on companies that aren’t coming in. We will be putting a tariff very shortly," Trump said without giving an exact time or rate.
He said the US will “soon put a fairly substantial tariff” on incoming semiconductors, following earlier threats of a 100-percent levy on chip imports.
“We will be putting a very substantial tariff, not that high, but a fairly substantial tariff with the understanding that if they come into the country, if they are coming in, building, planning to come in, there will not be a tariff," Trump told reporters.
“Like, I would say (Apple CEO) Tim Cook would be in pretty good shape," Trump remarked, as Cook sat across the table.
Amid the ongoing trade war, the United States and China remain in a high-stakes competition to develop advanced semiconductors, a critical component for artificial intelligence technologies.
Trump asked the Supreme Court to issue a swift ruling on tariffs after an appeals court deemed them illegal and sought to overturn the decision. The case, however, only addressed the legality of his broad tariff measures, not industry-specific duties such as those on steel or semiconductors.
Since returning to the office in January, Trump’s reliance on tariffs has unsettled global markets, strained relations with trade partners, and contributed to economic uncertainty.
Tariffs have become central to Trump’s foreign policy approach, used both as leverage in renegotiating trade agreements and as a tool to pressure nations and companies exporting goods to the US.
According to Reuters, Apple has recently boosted its domestic investment pledge in the US to $600 billion over the next four years, as tech leaders show increasing willingness to engage with Trump in his second term.
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