Trump Plans Tariffs on Foreign Chips Spares US Makers
Trump To Hit Foreign-Made Chips With Tariffs, But U.S. Makers Will Be Exempt
WASHINGTON — Former U.S. President Donald Trump says he is considering a new tax on all chips and semiconductors imported into the United States. But the tariff doesn’t impact companies already in the process of building factories in the U.S. or with plans to do so
Trump also told reporters at the Oval Office that, “If you say you’re going to build in America but don’t, now your product will be taxed coming soon! He did not provide all the specifics, and no formal tariff has been announced.
Who Will Be Affected?
The number of chips affected and the countries are yet to be ascertained. However, experts said China is likely to be the primary market.
TSMC, the world’s most advanced chipmaker and a major supplier to big U.S. companies like Nvidia, manufactures in the U.S. This likely means their customers won’t see a price increase.
To that end, Nvidia, the dominant provider of AI chips, has already pledged to spend tens of billions on chip production in America. A company spokeswoman declined to comment on Trump’s remarks.
Big Companies May Benefit
Economists say the new tariff plan will mostly help large tech companies that can afford to build in America. “It’s survival of the biggest,” said Brian Jacobsen, chief economist at Annex Wealth Management.
In 2022, the U.S. government approved $52.7 billion in funding to support chip manufacturing in America. So far, all top chipmakers have agreed to build factories in the U.S.
Global Chip Trade Deals
Countries like South Korea, Japan, and the EU have signed deals with the U.S. These deals may give them lower tariffs, around 15%, on chips and other goods.
The European Union confirmed that most of its exports—including chips—will face a flat 15% tariff.
Meanwhile, Chinese chips, including those from Huawei and SMIC, will likely not be exempt. These chips often come into the U.S. inside devices made in China.
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