• Trump plans new tariffs on steel and semiconductor imports soon.
• Initial rates will be lower to incentivize domestic manufacturing.
• Potential tariffs on semiconductors could reach as high as 300%.

U.S. President Donald Trump announced he will set tariffs on imports of steel and semiconductor chips in the coming weeks. He confirmed this plan while en route to a meeting with Russian President Vladimir Putin, stating, "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," according to channelnewsasia and Reuters.

Trump's strategy includes starting with lower tariff rates to give companies time to ramp up domestic production before sharply increasing them. This method resembles his previous tariffs on pharmaceuticals, as he noted, "I'm going to have a rate that is going to be lower at the beginning - that gives them a chance to come in and build - and very high after a certain period of time," as documented by indiatimes and Reuters.

He also indicated that the tariffs on semiconductors could rise significantly, with some estimates suggesting they could reach 300%. Trump stated, "I’m going to have a rate that is going to be 200%, 300%?" implying that manufacturers willing to invest in U.S. production might be exempted, a point discussed by indiatimes and Reuters.

This planned move comes after Trump previously raised aluminum and steel tariffs and follows major investments announcements from companies like Apple, which plans to invest more than $100 billion in domestic manufacturing. Trump's approach signals a continued strategy to use tariffs as a device to boost U.S. jobs and manufacturing, despite concerns over potential trade disruptions, according to channelnewsasia and Reuters.