President Donald Trump announced Wednesday that the United States will apply a 100% tariff on imported semiconductors and chips unless companies commit to domestic production.
Speaking from the Oval Office, Trump said the policy aims to strengthen U.S. manufacturing and reduce reliance on foreign technology. However, he left out specific details on what qualifies as “building in the United States.”
“We’re going to be putting a very large tariff on chips and semiconductors,” Trump 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.”
The new tariff plan, which Trump had hinted could arrive as early as next week, targets a critical sector that powers industries from smartphones to defense systems. Companies that produce or plan to produce chips on American soil will be exempt from the steep duties.
Trump’s statement followed his celebration of Apple’s new pledge to invest $100 billion in the U.S. over the next four years. That comes in addition to the $500 billion the tech firm had already promised.
Semiconductor firms have already begun shifting operations stateside, responding to growing political and market pressures. Taiwan Semiconductor Manufacturing Company (TSMC), the largest contract chipmaker globally, has committed $165 billion to its U.S. operations.
Nvidia, now the most valuable public company in the world, said in April it would invest $500 billion in artificial intelligence infrastructure within the U.S. over the next four years.
In June, GlobalFoundries pledged $16 billion to expand production at its New York and Vermont facilities. Around the same time, Texas Instruments revealed plans to pour $60 billion into seven U.S.-based fabrication plants. The company supplies major players including Apple, Ford, Medtronic, Nvidia, and SpaceX.
According to the Semiconductor Industry Association, more than 130 manufacturing projects worth over $600 billion have been announced in the U.S. since 2020.
While Trump’s aggressive tariff strategy is expected to accelerate reshoring, some industry leaders warn that uncertainty around the policy’s exact criteria may complicate planning. Companies are still awaiting guidance on how much of their manufacturing footprint must be based in the U.S. to qualify for exemptions.
With semiconductors underpinning modern technologies and supply chains, the latest move signals a broader attempt by the White House to solidify American dominance in advanced manufacturing.
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