By JOSH BOAK
WASHINGTON (AP) — President Donald Trump mentioned Wednesday that he’ll impose a 100% tariff on laptop chips, possible elevating the price of electronics, autos, family home equipment and different items deemed important for the digital age.
“We’ll be putting a tariff on of approximately 100% on chips and semiconductors,” Trump mentioned within the Oval Workplace whereas assembly with Apple CEO Tim Prepare dinner. “But if you’re building in the United States of America, there’s no charge.”
The Republican president mentioned firms that make laptop chips within the U.S. could be spared the import tax. In the course of the COVID-19 pandemic, a scarcity of laptop chips elevated the worth of autos and contributed to an total uptick in inflation.
Inquiries despatched to chip makers Nvidia and Intel weren’t instantly answered.
Demand for laptop chips has been climbing worldwide, with gross sales growing 19.6% within the year-ended in June, in response to the World Semiconductor Commerce Statistics group.
Trump’s tariff threats mark a big break from current plans to revive laptop chip manufacturing in the US. He’s selecting an method that favors the proverbial stick over carrots with the intention to incentivize extra manufacturing. Primarily, the president is betting that larger chip prices would drive most firms to open factories domestically, regardless of the chance that tariffs may squeeze company earnings and push up costs for cellphones, TVs and fridges.
Against this, the bipartisan CHIPS and Science Act signed into regulation in 2022 by then-President Joe Biden offered greater than $50 billion to help new laptop chip crops, fund analysis and practice staff for the trade. The combination of funding help, tax credit and different monetary incentives had been meant to attract in non-public funding, a technique that Trump has vocally opposed.
Initially Printed: August 6, 2025 at 5:39 PM EDT
