Trump to Impose High Steel and Semiconductor Tariffs to Boost U.S. Manufacturing

President Donald Trump announced plans to impose new tariffs on steel and semiconductor imports, signaling a further escalation of trade measures aimed at boosting U.S. manufacturing [1]. Speaking aboard Air Force One during a trip to Alaska, Trump outlined a phased strategy in which initial tariff rates would be relatively low, giving companies time to shift production to the U.S. before rising sharply in the future [2]. The proposed tariffs could reach as high as 300% in the long term, according to some reports [2]. The president compared this approach to previous efforts to incentivize domestic pharmaceutical production, emphasizing the goal of reducing reliance on foreign supply chains [3].

While Trump did not specify exact initial rates, he stressed that the tariffs would be set high enough to encourage local manufacturing [1]. These measures follow the earlier 25% tariffs on steel and aluminum, which were later increased to 50% in May 2025 [2]. It remains unclear whether the new tariffs will raise those rates further or adopt a distinct structure specifically for semiconductors. The administration is expected to finalize the details within the next two weeks, with implementation likely before August 8 [3].

The announcement coincided with broader efforts to reindustrialize the U.S. economy and strengthen national security through supply chain resilience. Last week, Trump proposed a 100% tariff on semiconductor imports, with exemptions available to firms that commit significant investments in U.S. production [2]. This move aligned with Apple’s recent announcement of a $100 billion investment in domestic operations, which appears to support the administration’s industrial policy goals [2].

Analysts noted that the tariffs could have significant implications for global markets, particularly in the technology and metals sectors [1]. The measures may lead to shifts in semiconductor supply chains, with some manufacturers potentially relocating to avoid the tariffs or qualify for exemptions. Trump’s approach has drawn support from domestic producers but also faced criticism from international trade partners, who have expressed concerns over the potential for escalating tensions.

The potential impact on financial markets, including cryptocurrencies, was also highlighted. While direct responses from the crypto industry remain limited, historical patterns suggest that trade tensions can increase volatility. Some market observers have pointed to past tariff escalations as precedents for heightened uncertainty [1]. For example, Ethereum (ETH) recently experienced a 1.69% price decline over 24 hours, though it had risen 83.83% over 90 days [1]. Analysts suggest that the broader economic adjustments resulting from the tariffs could influence decentralized financial instruments as investors seek hedges against geopolitical uncertainty [1].

Trump’s remarks were delivered during a trip to Alaska, where he is scheduled to meet with Russian President Vladimir Putin [1]. The timing of the announcement suggests a strategic effort to reinforce domestic economic priorities while maintaining diplomatic flexibility. The final implementation of the tariffs will likely shape global supply chain strategies and influence market sentiment in the coming months [2].

Sources:

[1] https://www.mining.com/trump-to-announce-steel-chip-tariffs-in-coming-weeks/

[2] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-semiconductor-tariffs-coming-soon-could-reach-300-200619487.html

[3] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-world-adapts-to-china-truce-us-tariff-revenue-inflation-in-check-200619422.html