Trump's Semiconductor Tariff Threat: A New Chapter in U.S. Manufacturing Strategy

President Trump announces plans to impose a 100% tariff on imported semiconductors but exempts companies manufacturing in the U.S. This move supports his broader aim of boosting domestic production. The announcement had varying effects globally, with some nations expressing concern over potential economic impacts.

In a bold move to boost domestic manufacturing, President Donald Trump has announced plans to levy a 100% tariff on imported semiconductors. However, this tariff will not apply to companies that produce their goods within the United States or have committed to doing so.

During his Oval Office announcement, Trump emphasized the strategic importance of bringing manufacturing back to America, citing Apple's additional $100 billion investment as a prime example. "If companies don't fulfill their commitments to build U.S. factories, they'll eventually face these charges," warned Trump.

The proposed tariffs have sparked international concern, with countries like South Korea confirming exemptions for their major chipmakers through existing trade deals. Meanwhile, other nations, such as the Philippines and Malaysia, worry about losing U.S. market access if competitiveness fades due to these tariffs.

(With inputs from agencies.)