U.S. businesses and investors are scrambling after President Trump announced plans to impose a 100% tariff on computer chips not made in the U.S. During an Oval Office meeting with Apple CEO Tim Cook, he said, "We'll be putting a tariff of approximately 100% on chips and semiconductors… But if you're building in the United States of America, there's no charge." The ambiguity of the policy has sent leading semiconductor stocks soaring while smaller producers search for clarity.
Here's what we know so far:
- Leading U.S. companies like Intel and Nvidia saw shares climb as investors bet on domestic production.
- Major Asian players such as Samsung and Taiwan Semiconductor Manufacturing Company are also rallying after announcing U.S. fab expansions.
- Smaller firms, like New York-based Adafruit Industries, say they're "waiting for official guidance" to calculate new prices.
Limor Fried, founder of Adafruit Industries, warns that higher tariffs could significantly raise design costs, since semiconductors are often the most expensive components in electronics. Her products source chips through U.S. distributors and directly from suppliers in the Philippines and the Taiwan region.
German chipmaker Infineon Technologies, a key supplier to the auto industry, confirmed it cannot comment without formal documentation outlining the tariff structure.
As trade partners and firms worldwide await details, the global chip supply chain faces fresh uncertainty. The next moves by policymakers could reshape the cost of tech products, affecting everything from smartphones to smart factories.
Reference(s):
Trump's planned 100% computer chip tariff sparks confusion among firms
cgtn.com
