WASHINGTON – Former US President Donald Trump has declared his intention to impose a sweeping 100% tariff on all imported microchips and semiconductors, a move that could send shockwaves through the global tech and electronics industries.
Trump made the announcement on Wednesday (6 August) during a media briefing at the Oval Office, where he reiterated his “America First” economic stance, targeting foreign-made components that power everything from smartphones to military systems.
“We’re going to be imposing very high tariffs on chips and semiconductors,” Trump said. “One hundred percent. All of them coming into the United States.”
Exemptions for Companies Building in the US
While Trump did not provide a specific timeline for the new tariffs, he clarified that companies which have already committed to setting up production facilities in the United States will be exempt.
“If you’ve promised to build in the US, or you’re already building — like many companies are doing right now — you won’t be taxed,” he stated.
This policy shift signals a sharp turn towards reshoring of semiconductor manufacturing, a sector the US sees as vital to national security and technological competitiveness amid rising tensions with China and other global suppliers.
Potential Fallout for Global Tech Supply Chains
Industry experts have warned that such a steep tariff could disrupt international supply chains, increase consumer electronics prices, and trigger retaliation from affected countries, many of which play a crucial role in the semiconductor ecosystem.
Singapore, for example, is a key node in global chip production, and such tariffs could negatively impact exports and multinational chipmakers with operations in the region.
Additionally, some analysts say the move could create market volatility and slow innovation, especially if manufacturers divert resources to avoid tariffs instead of investing in R&D.
Trade War Tensions Likely to Escalate
Trump’s aggressive tariff proposal comes amid escalating rhetoric about economic decoupling and trade protectionism. His comments may further strain US relations with semiconductor-heavy nations such as Taiwan, South Korea, Japan, and China.
While many US-based chipmakers are ramping up domestic capacity—Intel, TSMC, and Samsung among them—building new fabs is a long and capital-intensive process. In the short term, the US still relies heavily on overseas supply.
This proposal is expected to be a major talking point in the upcoming US elections and may shape the global semiconductor industry for years to come.