President Donald Trump announced a plan to impose a 100 percent tariff on all computer chips imported to the United States, with exemptions for companies that commit to building facilities on U.S. soil.
The Washington Post reports that President Donald Trump has unveiled a new trade policy targeting computer chips imported into the United States. During a White House event on Wednesday, Trump declared that his administration will impose a 100 percent tariff on all imported computer chips. However, he offered an exemption for companies that pledge to invest in building facilities within the country.
The announcement was made alongside Apple CEO Tim Cook, who stated that his company would massively increase its investment in U.S. jobs and suppliers in the coming years. Apple has already secured an exemption from the chip tariff, according to Trump. Trump praised Cook, calling him a “great, great man” and lauded Apple’s commitment to American innovation and manufacturing.
The proposed tariffs could have far-reaching consequences for the tech industry, as many companies rely on Asian suppliers for crucial components. Products ranging from smartphones to kitchen appliances and automobiles could be affected by the tariffs.
Trump’s chip policy aims to provide companies with “breathing room” to relocate their manufacturing facilities and supply chains to the United States. An administration official, speaking anonymously, acknowledged that setting up semiconductor factories is a complex process that cannot be done overnight. The policy is designed to offer flexibility and reflect this reality.
The president’s announcement has put pressure on tech firms to make investment deals in line with his goal of boosting American manufacturing. Companies such as Amazon, Nvidia, OpenAI, Roche, and Eli Lilly have already announced multibillion-dollar spending commitments in response to Trump’s urging.
However, the specifics of the exemption criteria remain unclear. Trump did not provide details on whether only new factories would qualify or what scale of investment would be considered sufficient. This ambiguity could give the president significant leverage over corporations dependent on imported chips.
In response to Trump’s policies, tech giants are rushing to manufacture chips and other high-tech components in the United States.
Breitbart News reported in April that Nvidia will invest $500 billion in U.S. manufacturing, including constructing AI supercomputers in Texas:
AI powerhouse Nvidia has commissioned over a million square feet of manufacturing space in Arizona and Texas to build and test its Blackwell chips and AI supercomputers. This marks the first time that Nvidia will be producing its cutting-edge AI technology entirely within the United States.
Nvidia’s Blackwell chips have already started production at TSMC’s chip plants in Phoenix, Arizona. Meanwhile, the company is constructing supercomputer manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas. Mass production at these facilities is expected to ramp up within the next 12-15 months.
Read more at the Washington Post here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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