Trump plans 100% tariffs on chips but spares companies ‘building in US’ | Trump tariffs
Donald Trump said it would impose a 100% price for foreign computer flea, probably increasing the cost of electronics, cars, household appliances and other products deemed essential in the digital age.
“We are going to put a price on around 100% on chips and semiconductors,” said Trump in the oval office while meeting Apple CEO Tim Cook. “But if you build in the United States of America, there is no fee.”
The Republican President said that companies that manufactured computer fleas in the United States would be spared the import tax. During the COVVI-19 pandemic, a shortage of computer flea increased the price of cars and contributed to a global increase in inflation.
Trump and Cook met Wednesday to discuss an agreement for Apple to invest $ 100 billion in manufacturing in the United States over the next four years. This comes after the iPhone manufacturer has already undertaken to invest $ 500 billion at the national level earlier this year. With Apple’s new investment, the total figure is now $ 600 billion.
Apple was supported as an example of a technological company based in the United States but which leads a large part of its manufacturing abroad. The vast majority of Apple products are made in China, for example, with around 90% of the iPhones assembled there. Cook met Trump several times since the president took office to discuss more manufacturing in the United States.
The largest chips contract in the world, Taiwan Semiconductor Manufacturing Company (TSMC), was “exempt” from the price, a manager said on a parliamentary briefing in Taipei on Thursday. The best South Korea trade envoy, Yeo Han-Koo, said that Samsung Electronics and SK Hynix would not be subject to 100%levy.
NVIDIA, one of the largest flea manufacturers in the United States, would probably be exempt from the price because the company has manufacturing facilities in the United States. The surveys sent to Nvidia and the Intel fleas manufacturer were not immediately answered.
However, the plan could harm other Asian countries, the president of the Philippin semiconductor industry, Dan Lachica, saying that with around 70% of the country’s exports being semiconductors, the new rules would be “devastating”.
The demand for computer flea has climbed worldwide, sales increasing by 19.6% in the end of the year in June, according to the World Semiconductor Trade Statistics Organization.
Trump’s pricing threats mark a significant break in relation to the existing plans to revive the production of computer fleas in the United States. He chooses an approach that promotes proverbial stick on carrots to encourage more production. Essentially, the president bet that higher flea costs would require most companies to open factories at the national level, despite the risk that prices can repress the profits of companies and increase the prices of mobile phones, televisions and refrigerators.
On the other hand, the Bipartite Flea and Sciences Act was signed in 2022 by Joe Biden provided more than $ 50 billion to support new computer chips, fundraising and employee research. The mixture of financial support, tax credits and other financial incentives was supposed to attract private investments, a strategy to which Trump opposed vocally.
The new 100% Trump rate on foreign computer flea should be officially announced next week and should apply to all countries and businesses.
