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President Donald Trump on Wednesday unveiled plans to impose a sweeping 100% tariff on imported semiconductors, a move he said is intended to accelerate U.S. efforts to dominate the global microchip industry and reduce reliance on foreign suppliers.
Speaking from the Oval Office alongside Apple CEO Tim Cook, Trump said the new tariffs will apply to companies that manufacture chips abroad, but will exempt those who agree to begin producing in the United States.
“We’ll be putting a tariff on of approximately 100% on chips and semiconductors,” Trump said. “But if you’re building in the United States of America, there’s no charge — even though you’re building and you’re not producing yet.”
Apple Commits $600 Billion to U.S. Investment
The announcement came during a high-profile event in which Apple revealed a dramatic expansion of its U.S.-based investments. The tech giant pledged an additional $100 billion to American manufacturing efforts, bringing its total planned investment to $600 billion over the next four years.
Trump, who has been pressuring major corporations to “re-shore” their operations, praised Apple’s commitment and pointed to similar announcements by OpenAI, Oracle, SoftBank, Nvidia, and Texas Instruments as evidence of a growing wave of investment in American industry.
A New Front in Tariff Strategy
The semiconductor tariff is among the most aggressive trade measures yet from the Trump administration, which has already targeted foreign-made steel, aluminum, automobiles, pharmaceuticals, and other goods with high tariffs.
On Tuesday, Trump previewed the move in an interview with CNBC, saying he intended to roll out semiconductor tariffs “within the next week or so.” Instead, he made the formal announcement one day later.
The White House said the 100% tariffs are aimed at addressing both economic and national security concerns.
“We are way too dependent on foreign countries — especially Taiwan and China — for our chips,” a senior administration official said. “This policy sends a clear message: If you want to sell semiconductors in the U.S., you need to build them here.”
Industry Faces Crossroads
The global semiconductor supply chain is dominated by companies in Asia, particularly Taiwan Semiconductor Manufacturing Company (TSMC), which produces the most advanced chips used in smartphones, computers, electric vehicles, and military systems.
In 2022, then-President Joe Biden signed the bipartisan CHIPS and Science Act into law, offering roughly $52 billion in incentives for chipmakers to build U.S. fabrication plants. That law jumpstarted projects by companies like Intel, Texas Instruments, and TSMC, all of which have since announced new or expanded operations on American soil.
Apple is reportedly partnering with Texas Instruments to build a facility in Texas, which could help the tech giant avoid the new tariff.
While Trump argues that the tariff will bolster domestic manufacturing, economists caution the move could backfire.
“Slapping a 100% tariff on imported semiconductors will likely raise costs for U.S. manufacturers who rely on those chips — and ultimately for consumers,” said Laura Martinez, senior economist at the Brookings Institution. “It also risks escalating trade tensions with key allies.”
Political Implications
With the 2026 midterms on the horizon and a renewed push by Trump to frame himself as a champion of American jobs, the semiconductor announcement adds to his populist economic messaging.
“This is about making America the semiconductor superpower,” Trump said Wednesday. “No more being second to anybody.”
