President Donald Trump announced Wednesday he will impose a 100% tariff on computer chips, aiming to force tech companies to manufacture semiconductors inside the United States. The move threatens to raise prices on consumer goods ranging from smartphones and laptops to cars and kitchen appliances, unless companies shift production to American soil.
Speaking from the Oval Office alongside Apple CEO Tim Cook, Trump declared, “We’ll be putting a tariff of approximately 100% on chips and semiconductors. But if you’re building in the United States of America, there’s no charge.” The policy marks a sharp break from previous subsidy-driven strategies under former President Joe Biden.
The tariffs target foreign-made computer chips—critical components for nearly every modern electronic device. Trump’s administration has opted for aggressive trade penalties over taxpayer-funded subsidies, betting that corporations will prioritize U.S.-based production to avoid higher costs.
Exemptions will be granted to companies that build chips in the U.S., offering a path around the tariff wall. This appears to benefit Apple, Nvidia, and Intel, all of which have made major commitments to expand manufacturing in the United States. Since Trump returned to the White House in January, Big Tech has pledged more than $1.5 trillion in domestic investments, including Apple’s additional $100 billion expansion announced earlier this year.
Markets responded positively. Apple stock jumped 5% during regular trading and another 3% in after-hours trading following Trump’s announcement. Shares of Nvidia and Intel also climbed, signaling investor confidence in the administration’s manufacturing incentives.
Industry analysts point to recent shortages during the COVID-19 pandemic, when limited chip supply drove up vehicle prices and contributed to inflation. Trump’s new tariff initiative is designed to eliminate dependency on foreign supply chains and ensure long-term domestic stability.
The decision sharply contrasts with Biden-era policies, particularly the 2022 CHIPS and Science Act, which provided over $50 billion in government funding to bolster chip manufacturing. That law emphasized subsidies and tax incentives, which Trump has repeatedly criticized as inefficient and wasteful.
The Semiconductor Industry Association has declined to comment. However, sales of computer chips continue to climb globally, with a 19.6% year-over-year increase reported in June, signaling the strategic importance of semiconductor control in global trade and national security.
