President Trump said Wednesday he will impose "approximately 100%" tariffs on imported semiconductors.
The president made the announcement during an Oval Office event with Apple CEO Tim Cook to unveil a new $100 billion commitment by the tech giant to invest in U.S.-based manufacturing.
The hefty new tariff would not apply to companies that have agreed to start manufacturing microchips in the U.S.
"We'll be putting a tariff on of approximately 100% on chips and semiconductors, but if you're building in the United States of America, there's no charge, even though you're building and you're not producing yet," Mr. Trump said.
Mr. Trump hinted at the new tariffs on Tuesday, telling CNBC's "Squawk Box" he planned to announce semiconductor duties "within the next week or so."
The United States is reliant on foreign-made semiconductors, with the market for the most advanced chips dominated by Taiwan. Lawmakers and national security experts have warned for years that this dynamic could leave the U.S. vulnerable, given that semiconductors — the tiny silicon chips that power computers — have become essential for everything from smartphones to cars and military equipment.
In 2022, former President Joe Biden signed the bipartisan CHIPS Act, which offers tens of billions of dollars in subsidies and tax credits to chipmakers that build U.S.-based factories.
In recent years, companies like Intel, Texas Instruments and Taiwan Semiconductor Manufacturing Company have unveiled plans to build new semiconductor factories in the U.S. — with Texas Instruments partnering with Apple to build a new plant.
Semiconductors are the latest foreign-made products to face a potential tariff. Mr. Trump has imposed or threatened hefty tariffs on products like steel, aluminum, pharmaceuticals and cars, in addition to blanket tariffs on most countries. The president argues tariffs will help boost U.S. manufacturing, though many economists warn they could lead to higher consumer prices and more sluggish economic growth.
Meanwhile, Mr. Trump has pressed American companies to boost their investments in U.S.-based manufacturing, touting recent commitments by OpenAI, Oracle, Softbank and Nvidia. During Wednesday's event, Apple announced it was upping its planned investments in the U.S. over the next four years to $600 billion.
