Former U.S. President Donald Trump unveiled plans to impose 100% tariffs on semiconductor imports from countries not manufacturing or planning to produce chips in America, a move that could reshape global tech supply chains. The policy, announced Wednesday, exempts companies committed to U.S.-based production but leaves uncertainty about its scope and implementation timeline.
"If you\u2019re building in the U.S., there is no tariff," Trump stated in the Oval Office, emphasizing incentives for domestic manufacturing. The announcement comes two years after Congress approved a $52.7 billion subsidy program to revive U.S. chip production, which fell from 40% of global output in 1990 to 12% today.
Analysts suggest the proposed tariffs could accelerate existing trends of tech decoupling between the U.S. and Asia, where over 75% of advanced semiconductors are currently produced. The policy may particularly impact businesses balancing operations across multiple markets while navigating evolving trade frameworks.
Market observers note the proposal could influence investment decisions ahead of the 2024 U.S. election, with major Asian semiconductor producers closely monitoring developments. The Commerce Department\u2019s 2022 success in attracting five leading-edge chip manufacturers to establish U.S. facilities adds complexity to the tariff\u2019s potential implementation.
