President Donald Trump recently accused Taiwan of stealing the chip business from the US. Previously, he announced tariffs on foreign-made processors. Trump had planned to impose nearly 25 percent to 100 percent tariffs on semiconductor chips made in Taiwan. Now, during a recent press briefing, Trump confirmed that he is imposing hefty tariffs on foreign-made chips, which he believes will bolster the US economy over the long term.
Trump is imposing hefty tariffs on semiconductor chips from Taiwan and other countries
According to Trump, the tariffs on semiconductor and pharmaceutical imports would be “25 percent and higher – and it’ll go very substantially higher over the course of a year”. President Trump has threatened sweeping new tariffs, maintaining that they will boost the US economy in the coming years. He also acknowledged that the tariffs on foreign-made chips could cause prices of consumer electronics devices to go up for Americans in the short term.
Trump will reveal more details about the tariffs on automobiles on April 2. Members of Trump’s cabinet will provide him the reports outlining options on tariffs for imports across industries on that day. He said that the government could collect 25 percent in taxes, or higher, for those imports. Trump has long railed against what he calls the unfair treatment of the United States automotive exports in foreign markets.
Trump is providing some time for chip makers to set up factories in the US
The newly appointed US President hasn’t yet revealed when exactly he will impose the new tariffs on semiconductor chips and pharmaceuticals. Trump said he wanted to provide some time for drug and chip manufacturers to set up factories in the US so that they could avoid the upcoming tariffs. Trump said he expected some of the biggest tech companies in the world to announce new investments in the US in the next couple of weeks. However, he didn’t provide any further details regarding the matter.
To combat the upcoming tariffs, some companies like TSMC have reportedly decided to increase chip production prices. MediaTek is also running simulations to predict potential outcomes from Trump’s tariffs. We will have more information on the matter in the coming weeks, so stay tuned to Android Headlines for regular updates.