Companies who don’t build their computer chips in the U.S. can expect to start paying a price.
President Donald Trump said Wednesday he will impose a 100% tariff on computer chips, which could raise the prices on electronics, autos, household appliances and other essential products dependent on the processors.
“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”
Previously, Trump had issued an exemption – temporarily — for most electronics from his administration’s tariffs.
The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation.
According to a report from The Associated Press, the exemptions were seen as a good thing for tech companies making huge financial commitments to manufacture more chips and other components in the U.S..
Big Tech already has made collective commitments to invest about $1.5 trillion in the U.S. since Trump moved back into the White House in January, including a $600 billion promise from Apple after the iPhone maker boosted its commitment by tacking another $100 billion on to a previous commitment made in February, the AP reported.
Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization.
