President Donald Trump announced plans to impose a 100% tariff on tens of billions of dollars’ worth of imported semiconductors used in consumer electronics and other products, unless they are made in the US. The move comes as part of an investigation into national security risks under Section 232 of the 1962 Trade Expansion Act.
Trump stated that companies making semiconductors in the US will not face the tariffs, but if they fail to follow through on their commitments, they will be charged later. The White House official clarified that the tariffs will be nuanced and phased in to reshore manufacturing while minimizing supply chain disruptions.
The US imported over $60 billion worth of semiconductors in 2024, with Asia being the largest supplier, followed by Europe, South Korea, Japan, and Taiwan. China exported about $2 billion worth of chips to the US last year, mainly used in automotive manufacturing.
Taiwan shipped over $12 billion worth of chips to the US last year, making it the top foreign supplier. The Trump administration has been eager to support Taiwan’s plan to invest up to $165 billion to build a major advanced semiconductor manufacturing cluster in Arizona.
However, some industry groups have warned that the tariffs could backfire on the US, raising costs for companies developing technology and manufacturing chips at home. Autos Drive America estimated that a 25% tariff on semiconductors could increase vehicle production costs by $1,200 to $2,500 per car.
Source: https://www.politico.com/news/2025/08/06/trump-says-he-will-put-100-percent-tariff-on-semiconductors-00496413