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Trump Vows 100% Tariff on Chips Unless Manufactured in the U.S.

ByDayne Lee

Aug 9, 2025

Trump Vows 100% Tariff on Chips Unless Manufactured in the U.S.

President Donald Trump announced Wednesday that the U.S. will impose a 100% tariff on imports of semiconductors and chips, but companies manufacturing these products within the United States will be exempt. This move aims to encourage domestic production in a sector that is vital to numerous industries. Details about how much U.S. manufacturing is required to qualify for the exemption were not immediately provided.

Trump’s Statement from the Oval Office

Trump said, “We’re going to be putting a very large tariff on chips and semiconductors. But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.” He added, “So in other words, 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.”

Several major companies have already pledged substantial investments in U.S. manufacturing. Apple announced it will invest an additional $100 billion over the next four years, adding to its prior $500 billion commitment. Taiwan Semiconductor Manufacturing Company (TSMC) plans to invest $165 billion in American fabs. Nvidia intends to spend $500 billion on AI infrastructure within the U.S. over four years. GlobalFoundries has pledged $16 billion to expand facilities in New York and Vermont, and Texas Instruments announced a $60 billion boost to upgrade seven chip fabs across the country.

Since 2020, over 130 projects totaling $600 billion have been announced to support the U.S. semiconductor industry, according to the Semiconductor Industry Association.

What The Author Thinks

Implementing a 100% tariff on imported chips sends a powerful message, but tariffs alone cannot resolve deeper supply chain challenges. Long-term success depends on investments in workforce development, infrastructure, and innovation to build a resilient semiconductor ecosystem. Balanced policies that combine tariffs with supportive measures will better position the U.S. to compete globally and meet growing demand sustainably.


Featured image credit: Anne Nygård via Unsplash

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Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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