Trump Announces 100% Tariff on Semiconductors, Exemptions for US-Based Manufacturers

Donald Trump plans to impose a 100% tariff on semiconductor imports, but will exempt companies investing in US production, including Apple, which has pledged a $100 billion US investment and will manufacture glass in Kentucky. The investment includes a new manufacturing program and partnerships with Corning, Applied Materials, Texas Instruments, and others.

US President Donald Trump is set to announce new tariffs on semiconductor imports, with a 100% levy proposed. However, the administration plans to exempt companies that invest in domestic production, a move that has led to significant commitments from tech giants like Apple.

Apple Inc. CEO Tim Cook announced a $100 billion investment in the United States, including a new manufacturing program and partnerships with companies such as Corning, Applied Materials, and Texas Instruments. The investment includes a new manufacturing program for glass in Kentucky, a significant step towards reducing the company's reliance on foreign manufacturing [2].

The proposed tariffs could have a significant impact on the semiconductor industry, particularly for companies like Nvidia, whose chips are primarily produced in Taiwan. Nvidia's CEO, Jensen Huang, met with President Trump to discuss exemptions for the company's products. The meeting comes as the Trump administration has been pushing for more domestic semiconductor production to bolster the US economy and technological leadership [1].

Applied Materials, a key player in the semiconductor manufacturing supply chain, has also stepped up its commitment to US production. The company is investing $200 million in a new facility in Arizona, in partnership with Apple and Texas Instruments. This investment, part of a broader strategy to enhance US semiconductor manufacturing, is expected to create around 200 jobs in manufacturing, R&D, and services within five years [2].

The response from the industry has been mixed. While some companies are embracing the opportunity to increase domestic production, others are concerned about the potential impact on supply chains and costs. Analysts have noted that the proposed tariffs could lead to increased prices for consumers and potential disruptions in the semiconductor supply chain [1].

In conclusion, President Trump's proposed semiconductor tariffs have sparked a wave of investment and strategic partnerships in the US semiconductor industry. Companies like Apple and Applied Materials are leading the charge, investing billions to bolster domestic production. However, the long-term impact of these tariffs remains to be seen, and the industry is closely watching the developments.

References:
[1] https://www.cnbctv18.com/market/donald-trump-meets-with-nvidias-jensen-huang-as-semiconductor-tariffs-near-19649985.htm
[2] https://www.quiverquant.com/news/Applied+Materials+Partners+with+Apple+and+TI+to+Enhance+U.S.+Semiconductor+Manufacturing+with+%24200+Million+Arizona+Investment