Washington (AP) – President Donald Trump On Wednesday, he said it would likely impose 100% tariffs on computer chips, increasing the costs of electronics, automobiles, home appliances and other products that are deemed essential in the digital age.
“We’re going to impose about 100% tariffs on chips and semiconductors,” Trump said in his oval office while meeting Apple CEO Tim Cook. “But if you’re built in the United States, there’s no fee.”
The Republican president said companies that make computer chips in the United States will be exempt from import taxes. Between COVID-19 Pandemica shortage of computer chips led to a rise in car prices, contributing to an overall increase in inflation.
Enquiries sent to Chip Makers Nvidia and Intel were not immediately answered.
According to the global semiconductor trade statistics agency, demand for computer chips is rising worldwide, with sales increasing by 19.6% over the year in June.
Trump’s tariff threats mark a major break from existing plans to revive US computer chip production. He chooses an approach that prefers proverbs over carrots to encourage more production. Essentially, the president bets that most companies will force them to open their factories domestically despite the risk that tariffs can squeeze corporate profits and boost prices for mobile phones, televisions and refrigerators.
In contrast, bipartisan Chips and Science Method It was signed into law in 2022 by the then president Joe Biden It provided over $50 billion to support the new computer chip plant, training research and train workers for the industry. The combination of fundraising support, tax credits and other financial incentives was intended to draw out private investment, a strategy Trump has spoken out against.
