Donald Trump Threatens Tariffs On Chip Imports To Force Firms Into US Production: 'Not That High, But Substantial!'

(MENAFN- Live Mint) US President Donald Trump has pledged to impose tariffs on semiconductor imports from companies that fail to set up manufacturing in the United States, stepping up his efforts to bring critical technology production back home. He described the move as“fairly substantial.”

White House dinner with tech leaders

Speaking at a White House dinner with senior figures from the technology sector on Thursday, Trump said the duties would be introduced in the near future.

“We will be putting a tariff very shortly,” he remarked, while stressing that the rate would not be excessively high but“substantial enough”.

Apple singled out as an exception

The US Presiden stated,“Yeah, I have discussed it with the people here. Chips and semiconductors - we will be putting tariffs on companies that aren't coming in.”

The president also suggested Apple would avoid such penalties, pointing to its increased commitment to US operations. Chief executive Tim Cook, seated across the table, has pledged to raise the company's domestic investment to $600 billion over the next four years.

Tariffs have long been central to Trump's economic strategy, deployed as both bargaining chips in trade negotiations and as a means of pressuring multinational firms to expand in America. The approach, however, has rattled markets and strained relationships with trading partners, while adding to global economic uncertainty.

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In July, Trump floated a 100 per cent tariff on semiconductor imports, excluding companies with existing or planned factories in the US. Taiwanese manufacturer TSMC, as well as South Korean giants Samsung Electronics and SK Hynix, have all announced investment in US-based facilities.

Legal challenges remain a hurdle. A federal court recently struck down large parts of Trump's tariff programme, ruling that his sweeping use of a 1977 emergency law exceeded its scope. The administration has since asked the Supreme Court to intervene, seeking to preserve measures that have become central to its trade policy.

(With inputs from Reuters)

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