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President Trump says he will impose a 100 per cent tariff on imported computer chips, aiming to boost US manufacturing — a move that could drive up prices on electronics, cars and appliances.
US President Donald Trump said that he will impose a 100 per cent tariff on imported computer chips.
UPDATED: Aug 7, 2025 04:20 IST
US President Donald Trump said on Wednesday he will impose a 100 per cent tariff on imported computer chips, a move that could sharply increase the cost of electronics, vehicles and home appliances while aiming to boost domestic manufacturing.
“We’ll be putting a tariff on of approximately 100% on chips and semiconductors,” Trump said during a meeting in the Oval Office with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”
Trump framed the move as a way to revive domestic manufacturing and end US reliance on foreign chipmakers. He said American-made chips would be exempt from the import tax. The global chip shortage during the COVID-19 pandemic exposed vulnerabilities in the supply chain and drove up consumer prices, a point Trump cited in justifying the new policy.
Trump’s approach contrasts with the bipartisan CHIPS and Science Act passed in 2022 under then-President Joe Biden, which provided more than USD 50 billion in incentives to support domestic chip production, workforce training and research.
That law aimed to make US chipmaking competitive by luring private investment with federal support. Trump has dismissed that path, favoring tariffs over what he sees as corporate handouts.
Global demand for semiconductors continues to rise, with sales jumping nearly 20 per cent in the 12 months ending in June, according to the World Semiconductor Trade Statistics group.
- Ends
With inputs from Associated Press
Published By:
Aashish Vashistha
Published On:
Aug 7, 2025
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