President Donald Trump has announced plans to impose a 100% tariff on all imported semiconductor chips and related components, a move aimed at reshoring critical technology manufacturing to the United States. Speaking to reporters in the Oval Office on Wednesday, Trump said the new tariffs would apply broadly to semiconductors entering the U.S., except for companies that have already committed to manufacturing chips domestically.
“So 100 percent tariff on all chips and semiconductors coming into the United States. But if you’ve made a commitment to build [in the U.S.], or if you’re in the process of building [in the U.S.], as many are, there is no tariff,” Trump stated.
While Trump did not specify how many chips or what categories of semiconductors would fall under the proposed tariffs, the announcement signals a hardline approach to boosting domestic chip production and reducing reliance on overseas supply chains — particularly from East Asia.
In 2022, Congress passed a $52.7 billion semiconductor manufacturing and research subsidy program aimed at revitalizing America’s chip industry. The Biden administration’s Commerce Department successfully attracted the five leading-edge semiconductor manufacturers including Intel, TSMC, and Samsung to establish or expand factories in the U.S.
At present, only about 12% of the world’s semiconductors are made in the U.S., down from 40% in 1990. The shift in production overseas has left the U.S. vulnerable to supply chain disruptions, especially during geopolitical tensions or global crises.
Trump also emphasized enforcement: “If, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date you have to pay, and that’s a guarantee.”
The announcement is expected to spark debate over potential trade tensions and the impact on tech industries that rely on imported chips. However, Trump’s supporters see the move as a strategic step toward economic self-sufficiency and national security in an increasingly tech-driven global economy.
