Thu, 07 Aug 2025

Thu, 07 Aug 2025 What are semiconductors and why is Trump threatening 100% tariffs?

The President said he plans to introduce 100% tariffs on foreign-made chips, but the largest producers may avoid the levy.
US President Donald Trump plans to impose a 100% tax on imported semiconductors, which are tiny chips that power modern technology and devices. This could lead to higher prices for some products and disrupt the tech industry. However, companies that agree to manufacture in the US may be exempt from the tariffs. The semiconductor industry is crucial for the global economy, with Taiwan being a major supplier. The country's Taiwan Semiconductor Manufacturing Company (TSMC) provides over half of the world's semiconductors, which are used in devices such as smartphones, laptops, and video game consoles. President Trump wants to encourage companies to manufacture more products in the US by imposing tariffs on foreign-made chip imports. He believes this will help boost domestic technology manufacturing and create jobs. However, the move has raised concerns about national security and the potential impact on the tech industry. Some companies, such as Apple and Samsung, may be able to avoid the tariffs if they commit to investing in new US manufacturing facilities. The US government has already provided funding awards to TSMC for building a factory in Arizona, but production at the site has faced delays due to a shortage of skilled workers. The move is part of President Trump's efforts to increase domestic technology manufacturing and reduce reliance on foreign suppliers. However, it remains to be seen how this will affect the global semiconductor industry and the tech companies that rely on them.
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