Trump Says He Will Put 100 Percent Tariff On Semiconductors

President Donald Trump said Wednesday that he plans to impose 100 percent tariffs on tens of billions of dollars of imported semiconductors used in consumer electronics and other products, but indicated he would not charge companies that commit to making chips in the U.S.

"We'll be putting a tariff of approximately 100 percent on chips and semiconductors," Trump said at a White House event with Apple CEO Tim Cook.

Trump said companies that make semiconductors in the U.S. will not face the levies. However, it was not entirely clear if he meant he would exclude chips that those companies import from abroad, or just observing that chips made domestically will not face tariffs.

"If you have made a commitment to build or are in the process of building, as many are, there is no tariff. If for some reason you say you are building and you don't build, we go back and add it up, it accumulates, and we will charge you at a later date. You have to pay," Trump said.

The U.S. imported more than $60 billion worth of semiconductors in 2024, including more than $50 billion from Asia. Leading suppliers include Taiwan, Malaysia, Vietnam, the European Union, Thailand, South Korea and Japan.

China exported about $2 billion worth of chips to the U.S. last year. It is a significant source of chips used in automotive manufacturing.

The EU, as part of its recent trade deal with Trump, secured a commitment that it would only face a 15 percent tariff on semiconductors. South Korea and Japan appear to have won a similar commitment as well.

Trump’s announcement stems from an investigation that Commerce Secretary Howard Lutnick launched on April 1 under Section 232 of the 1962 Trade Expansion Act. That legislation empowers the president to restrict imports deemed a risk to national security.

The Semiconductor Industry Association, the main U.S. industry group, has warned that “untargeted tariffs” could backfire on the U.S. “by raising the cost of developing technology and manufacturing chips at home."

Ben Johansen contributed to this report.