U.S. President Donald Trump said Friday that his administration will impose new tariffs on semiconductor imports from companies that do not shift their manufacturing operations to the United States. The move, revealed during a White House dinner with technology executives, is aimed at bolstering domestic chip production and reducing reliance on foreign supply chains.
Trump told reporters that the tariffs would be “very substantial,” although not excessively high, and made clear they would apply only to companies that have not made commitments to build or expand facilities within the U.S. The president did not disclose the exact timing or percentage of the proposed tariffs but emphasized that firms currently operating or planning to set up manufacturing in the U.S. would be exempt.
“If they are not coming in, there is a tariff,” Trump said, adding that the measure is intended to incentivize companies to invest in the American semiconductor sector. The announcement comes amid ongoing efforts by the administration to restore high-tech manufacturing capabilities domestically, citing national security and economic competitiveness as key concerns.
The semiconductor industry has been a focal point of U.S. trade policy over the past several years, particularly as supply chain disruptions and geopolitical tensions have exposed vulnerabilities in the global technology ecosystem. Trump singled out Apple as a company likely to be exempt from the new measures, noting its increased investment in U.S.-based operations. Apple has pledged to invest approximately $600 billion in the American economy over the next four years.
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The president said Apple CEO Tim Cook “would be in pretty good shape,” indicating the company’s efforts align with the administration’s reshoring agenda. Major global chipmakers including Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and SK Hynix have already announced plans to build or expand fabrication plants in states such as Arizona and Texas.
These developments could position them to avoid the new tariffs, although detailed criteria for exemptions have not yet been published. The new tariffs are expected to apply to a wide range of semiconductor products, from logic chips used in mobile phones and data centers to memory chips found in consumer electronics. Analysts say the measure could have far-reaching effects on global trade, particularly for companies with substantial overseas manufacturing footprints that have yet to pivot toward the U.S. market.
The administration’s move comes on the heels of earlier tariff actions, including a proposed 100 percent tariff announced in August, similarly structured to encourage domestic production. Commerce Secretary Howard Lutnick reaffirmed that existing trade agreements under Section 232 of the Trade Expansion Act remain legally intact despite recent court challenges, and that the government is seeking a Supreme Court review to uphold its broad tariff authority under emergency provisions.
Global tech supply chains brace for impact of US tariff rules
The policy shift is expected to trigger industry-wide reassessments of production strategies and supply chain logistics. Technology firms without U.S.-based manufacturing capabilities may face increased costs, prompting potential price adjustments or realignments of global procurement operations. Meanwhile, the United States and Japan have announced a new $7 billion energy trade deal that includes preferential U.S. tariff treatment for Japanese semiconductor and pharmaceutical exports.
The agreement is seen as part of a broader strategy to deepen trade ties with allies while reinforcing domestic industrial policy. Trump’s latest tariff initiative underscores a continuing focus on reshaping global technology supply chains through protective trade measures. As implementation details emerge, industry leaders are closely monitoring how the policy will affect investment decisions and cross-border manufacturing operations in the months ahead. – By Content Syndication Services.