Trump says he thought about breaking up chip industry

Trump says he thought about breaking up chip industry

President Donald Trump has hinted at the possibility of breaking up the semiconductor industry, adding to the ongoing trade tensions with major trading partners. According to a recent report, Trump has expressed his intention to impose tariffs on pharmaceutical products and semiconductors as early as August 1, 2025 [1].

The US President has stated that implementing tariffs on semiconductors is "less complicated" than on pharmaceuticals, suggesting a more streamlined approach to the chip industry. This move comes as part of his broader strategy to protect US manufacturing and boost domestic production. However, the exact details of the tariffs and their potential impact on the global chip market remain unclear.

Trump's latest threat to impose tariffs follows a series of trade actions taken against various countries, including Brazil and several Asian nations. The US has also been in negotiations with the EU to avoid a 30% tariff on European goods, with the EU seeking a negotiated solution before the August 1 deadline [1].

The potential breakup of the chip industry could have significant implications for global trade and the tech sector. Semiconductors are essential components in electronic devices, and tariffs could lead to increased production costs and potential supply chain disruptions. Companies like Apple and Samsung, which rely heavily on semiconductors, could be particularly affected.

Moreover, Trump's stance on the chip industry comes amidst his administration's broader push for regulatory changes in the crypto sector. The signing of the GENIUS Act and the creation of a U.S. Strategic Bitcoin Reserve reflect the administration's pro-crypto policies, which have contributed to the surge in Bitcoin's value [2].

While the potential tariffs on semiconductors remain a topic of speculation, the ongoing trade tensions and regulatory changes underscore the dynamic nature of global trade and the tech industry. Investors and financial professionals should closely monitor these developments for potential impacts on their portfolios.

References:
[1] https://www.inkl.com/news/trump-threatens-to-impose-drug-and-chip-tariffs-as-soon-as-1-august
[2] https://moneymorning.com/2025/07/23/trump-media-goes-full-michael-saylor-buys-2-billion-of-bitcoin/