U.S. President Donald Trump said on Aug. 6 that the United States would impose a 100% tariff on imported semiconductors, a sweeping move that deepens his administration’s protectionist agenda, while promising exemptions for companies building or committing to build manufacturing operations on U.S. soil.
“We’re going to be putting a very large tariff on chips and semiconductors,” Trump told reporters from the Oval Office, flanked by Apple Inc. Chief Executive Tim Cook. “But the good news for companies like Apple is, if you’re building in the United States—or have committed, without question, to build in the United States—there will be no charge.”
Reiterating the point, Trump said: “We’ll be putting a tariff of approximately 100% on chips and semiconductors. 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, in terms of the big numbers of jobs and all of things building, if you’re building, there will be no charge,” he added. “That’s a big statement, and I think the chip companies are all coming back home,” he added.
The announcement coincided with Apple’s unveiling of a $100 billion expansion to its U.S. manufacturing footprint, bringing the company’s total domestic commitment to $600 billion over the next four years. The new investment is part of Apple’s American Manufacturing Program (AMP), which focuses on strengthening domestic supply chains and advancing high-tech production. AMP partners include Corning Inc., Texas Instruments Inc., and Applied Materials Inc.
Trump did not indicate when the chip tariff would take effect, but the measure would accompany a broader set of reciprocal tariffs scheduled to be imposed on many trading partners beginning at 12:01 a.m. Eastern Time on Aug. 7. Electronics such as smartphones, computers, and monitors have thus far been excluded, though Trump signaled they may be included in a separate action targeting products that contain semiconductors.
The administration is pursuing the policy under Section 232 of the Trade Expansion Act, a Cold War–era statute that allows the president to impose tariffs on imports deemed to threaten national security. The current investigation, launched earlier this year, covers a range of foreign-made chips and electronic devices.
Should the tariffs be enacted, they would mark the first time that semiconductors are subjected to duties since the 1997 World Trade Organization Information Technology Agreement (ITA), which committed signatory nations—including the U.S. and South Korea—to tariff-free trade in IT goods.
The proposed measure could deal a sharp blow to South Korean chipmakers, which shipped $10.68 billion worth of semiconductors to the U.S. last year—making it Korea’s third-largest export category to the American market.
While Seoul has said it secured “most-favored nation” treatment for semiconductors in a recent trade agreement with Washington, it remains unclear what tariff rates—if any—Korean exporters will face under the proposed framework.
Industry leaders such as Samsung Electronics Co. and SK Hynix Inc. now face the prospect of recalibrating their U.S. strategies, as the administration’s tariff shift disrupts long-standing assumptions of duty-free trade under the global IT regime.