Trump Plans 100% Tariff on All Semiconductor Imports, Threatening U.S. Tech Supply Chain

During a recent discussion with Tim Cook, the CEO of Apple, former President Trump unveiled an unexpected decision to impose a staggering 100% tariff on chip imports. This bold move sent ripples through the markets, as it significantly surpassed the anticipated range of 25% to 50% tariffs.

Prioritizing Domestic Production of Semiconductors

The US administration’s new tariff policy aims to boost local semiconductor manufacturing, reflecting a strategic shift toward self-sufficiency in technology. By introducing this hefty 100% tariff on imported chips, the government hopes to compel companies like Taiwan Semiconductor Manufacturing Company (TSMC) to invest in building manufacturing plants within the United States. President Trump emphasized that companies opting to produce chips domestically would not incur any tariffs, making local manufacturing an attractive economic proposition.

This significant increase in import costs poses a challenge for American technology firms, which may find it economically unfeasible to source semiconductors from overseas suppliers, particularly in Taiwan. The effects of this policy are likely to reshape the landscape of the tech industry, pushing companies to reconsider their supply chain strategies.

🚨 BREAKING: President Trump announces 100% TARIFFS on chips and semiconductors – “but if you’re building in the USA, there’s no charge.”He’s DOUBLING DOWN on tariffs. Because it’s working. Imagine that.pic.twitter.com/HAyFFY9562

— Eric Daugherty (@EricLDaugh) August 6, 2025