Trump will impose a 100% tariff on computer chips, raising concerns for prices in electronics and essential products. Companies manufacturing chips in the U.S. will be exempt from this tariff. This decision follows a previous exemption for most electronics from high tariffs. A shortage of chips during the COVID-19 pandemic had already led to price increases in autos and inflation. Major tech companies, including Apple, have committed about $1.5 trillion to U.S. manufacturing since the start of Trump's latest term, which investors view positively.
"We'll be putting a tariff of approximately 100% on chips and semiconductors," Trump said in the Oval Office while meeting with Apple CEO Tim Cook. "But if you're building in the United States of America, there's no charge."
Investors seemed to interpret the potential tariff exemptions as a positive for Apple and other major tech companies that have been making huge financial commitments to manufacture more chips and other components in the U.S."
During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation.
Big Tech already has made collective commitments to invest about $1.5 trillion in the U.S. since Trump moved back into the White House in January.
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