seniorspectrumnewspaper – President Donald Trump hinted that upcoming tariffs on imported chips could exceed the 100% rate he initially proposed. Speaking to reporters aboard Air Force One en route to Alaska, Trump emphasized the goal of encouraging companies to build factories in the US to avoid these tariffs.
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He noted the presence of “hundreds of factories all over the country,” including those focused on autos and artificial intelligence. Trump explained that companies could face tariffs as high as 200% or 300% if they do not open manufacturing facilities in the United States.
“We’re gonna have a rate that is going to be lower at the beginning,” Trump said. This phased approach is designed to give companies a chance to establish operations in the US before tariffs rise sharply. He warned that companies failing to build domestically would face “very high tariffs,” making it economically unviable to avoid local manufacturing.
Trump also confirmed that tariffs on steel and semiconductors would be announced soon, possibly within the next two weeks. This statement indicates a clear push to protect and grow American chip production amid increasing global competition.
Industry Braces for Impact as Tariffs Loom
The looming tariffs have put major technology companies on alert. Industry leaders, including Apple, Nvidia, and chip manufacturers like Taiwan’s TSMC and South Korea’s Samsung, may face limited exemption periods.
Last week, Taiwan and South Korea suggested that companies actively investing in US chip production might avoid tariffs. Trump had stated that “if you’ve made a commitment to build or are in the process of building, there’s no tariff.” This conditional exemption aims to incentivize domestic investment in semiconductor manufacturing.
However, the tech sector remains cautious. The potential tariffs could increase costs for PC processors, smartphones, and other electronics. Although the administration previously exempted computers, phones, and monitors from reciprocal tariffs, semiconductors appear to be the next target.
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If implemented at high rates, the tariffs risk inflating prices throughout the electronics supply chain. Companies may face tough choices between passing costs to consumers or accelerating US-based production to avoid tariffs. This could lead to supply chain disruptions and increased production costs, potentially slowing innovation and market growth.
Overall, Trump’s tariff strategy signals a strong push toward reshaping the semiconductor industry in America. The coming weeks will be critical as details emerge, shaping the future of global chip supply and the broader tech economy. Stakeholders across industries will closely monitor these developments to adapt their strategies accordingly.
