• Trump plans to impose a 100% tariff on imported semiconductors to boost US manufacturing.
• Companies that commit to building production facilities in the US will be exempt from tariffs.
• The new tariff policy could raise prices for electronics, vehicles, and household goods.
• Apple announced a significant investment in US manufacturing concurrent with tariff discussions.
• Concerns have been raised over the economic implications for foreign chipmakers and suppliers.

President Donald Trump announced plans to impose a 100% tariff on imported semiconductors in a bid to encourage domestic manufacturing. He specified that this measure would apply to "all chips and semiconductors coming into the United States," although companies committed to production in the US would be exempt from the tariff. During the announcement, Trump stated, "But if you’re building in the United States of America, there’s no charge," emphasizing the need for domestic facilities in the semiconductor sector, according to India Times, Bloomberg, and Channel News Asia.

The announcement coincided with Apple CEO Tim Cook unveiling a $100 billion investment in US manufacturing, highlighting a broader trend among tech giants to bolster domestic production amid increasing tariffs. Cook’s commitment suggests a strategic approach to mitigate the impact of the anticipated tariffs on products like the iPhone, as companies like Apple that commit to U.S.-based production would not face the tax, according to HuffPost and Al Jazeera.

The potential tariffs could significantly affect pricing structures for various consumer products, as semiconductors are essential components in electronics, automobiles, and white goods. Analysts are warning that increased costs could be passed on to consumers, leading to higher prices for essential items, as noted by TRT World and South China Morning Post.

While major chip manufacturers like Taiwan Semiconductor Manufacturing Co (TSMC) and South Korean firms Samsung and SK Hynix are expected to be exempt from the tariffs due to existing investments in the US, smaller players may be pressured to relocate production to maintain market competitiveness. This dynamic could lead to significant shifts in global supply chains, as highlighted by industry leaders, according to Reuters and Channel News Asia.