Trump's 100% Tariff on Semiconductors: Companies Commit to US Manufacturing

Bank of America (BofA) expects lower impact from President Trump's planned 100% tariff on semiconductor imports due to several major companies committing to building significant U.S. manufacturing footprints. This move aims to reduce the U.S.'s reliance on foreign-made semiconductors and boost domestic production.

Bank of America (BofA) analysts have expressed their view that President Trump's planned 100% tariff on semiconductor imports will have a lower impact on the U.S. economy than initially anticipated. This assessment is based on several major companies committing to substantial investments in U.S. manufacturing facilities, which will likely exempt them from the tariff [2].

The tariff, announced by Trump, aims to reduce the U.S.'s dependence on foreign-made semiconductors and boost domestic production. It applies to all imported chips, including those used in electronics and automobiles. Companies building facilities in the U.S. will be exempt from the tariff [3].

A key factor in BofA's expectation of minimal impact is the significant investments already committed by major semiconductor manufacturers. For instance, Taiwan-based TSMC has pledged a $300 billion investment to build a massive chip plant in Arizona, which is expected to create thousands of jobs and increase domestic production [3]. Additionally, South Korea's Samsung and SK Hynix have also committed to building facilities in the U.S., potentially qualifying them for exemptions [2].

The U.S. has been working to onshore its semiconductor supply chain for several years, with major players like TSMC, Samsung, and others investing heavily in domestic manufacturing. This trend is expected to continue, further reducing the impact of the tariffs.

However, some uncertainties remain regarding the specifics of the tariff, such as whether it will apply to raw semiconductors, end devices, or components within end devices. The intricate nature of the semiconductor supply chain also adds complexity to the potential tariff strategies [2].

In conclusion, while Trump's 100% tariff on semiconductor imports is a significant move aimed at promoting domestic manufacturing, the substantial investments by major companies in U.S. facilities may mitigate its impact. Bank of America's analysts remain optimistic that the tariff will have a lower effect on the U.S. economy than initially feared.

References:
[1] https://www.ainvest.com/news/trump-announces-100-tariff-semiconductor-imports-2508/
[2] https://www.cnbc.com/2025/08/07/trump-100-percent-chip-tariff-threat-leaves-more-questions-than-answers.html
[3] https://www.ainvest.com/news/ainos-secures-2-1-million-order-ase-ai-nose-deployment-semiconductor-manufacturing-2508/