US President Donald Trump has announced a 100% tariff on non-US computer chips, which could lead to higher prices and potential shortages of various products. The move is expected to impact consumers, particularly in the electronics industry.
The US already produces semiconductors worth $58 billion annually, but most lower-end chips are imported from countries like Malaysia. Higher-end chips come from Taiwan, a country with which the US has a trade agreement. Experts warn that the tariff could compel companies to pull back on production or hike prices.
The impact of the tariff will depend on how it is implemented and covered under the harmonized system codes. Companies may pass on costs to consumers, leading to higher prices for products like laptops, cars, and video game consoles. Used car owners could also be affected by higher repair costs.
However, not all experts agree that the tariff will have a significant impact. Some argue that companies are already struggling to adjust to higher import costs, so the additional burden from the tariff may not be as dramatic.
The US has made strides in recent years to expand chip production, including the CHIPS and Science Act signed by President Joe Biden in 2022. However, growing chip manufacturing takes time and requires a talent pipeline improvement. Experts warn that companies may pull back on production if import costs rise.
The tariff could also lead to shortages of certain products. While it’s unlikely to create widespread shortages like the COVID-19-era semiconductor chip shortage, some companies may reduce production or pass on costs to consumers. The impact will depend on how the tariff is implemented and covered under the harmonized system codes.
Source: https://eu.usatoday.com/story/money/2025/08/08/trump-tariff-chip-semiconductor-consumer-prices-impact/85562097007