President Trump's recent announcement of a 25% tariff on most goods from Canada and Mexico, alongside an additional 10% tariff on China, has caused a decline in U.S. stock markets. These tariffs, effective immediately, aim to incentivize car manufacturers to establish production facilities in the United States to avoid additional costs. While TSMC is set to invest heavily in the U.S., companies are already bracing for price hikes, with businesses like Acer and Dell expressing concerns over raised costs passed on to consumers due to tariffs.
"Tomorrow the tariff of 25 percent on Canada and 25 percent on Mexico and that'll start," Trump said during a Monday press conference. "So what they're going to have to do is build their car plants and other things in the United States, in which case they have no tariffs. The tariffs are all set, they go into effect tomorrow."
While promising tariffs from Tuesday, Trump also said TSMC has vowed to plow more investment into the United States; the Taiwanese chipmaker said that means it's increasing its spending in the US from $65 billion to $165 billion.
It's unclear if that exemption will apply immediately. Let's hope so, because as we warned in November, importers of tech hardware pay those tariffs and usually pass the extra costs on by hiking prices for buyers.
Some said they had increased import orders in recent months to build up inventory of product before any tariffs are imposed, but that kit will eventually sell and then the prices will rise.
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