Trump Discusses Tariffs and Manufacturing Investments

During a press conference on Wednesday in the Oval Office, President Donald Trump addressed tariffs on imported chips and semiconductors, noting that while those made overseas face around 100% tariffs, US-produced chips have no such charges.

Since kicking off his 2024 campaign, Trump has been emphasizing the need to bring manufacturing jobs back to the US. He also aims to attract foreign businesses to invest in American production. During a discussion about Apple’s recent $100 billion commitment to US manufacturing, he pointed out that companies like Apple are increasingly returning to their roots.

“Companies like Apple are coming home,” Trump stated. “They all want to return, and they need to return. We’re focused on making this happen effectively. We’ll impose a significant tariff on imported chips and semiconductors, but companies like Apple won’t incur these charges if they commit to building in the US.”

In essence, he indicated that US-based firms wouldn’t face tariffs, thereby incentivizing many companies from abroad to relocate to the US. Thus, he mentioned plans to implement a tariff of approximately 100% on foreign chips and semiconductors.

Since Trump’s return to the presidency, Apple has shifted more of its operations to the US, citing trade uncertainties. In April, he introduced his “liberation day” initiative, which involved setting mutual tariffs with select countries.

After its announcement, Trump declared a 90-day suspension on those tariffs to allow time for negotiations. Notably, companies like Advanced Micro Devices plan to begin chip production at TSMC’s facility in Arizona, marking a significant milestone for US manufacturing.

“I haven’t shared this with you yet,” Trump told Apple CEO Tim Cook. “We talked about the concept, but I didn’t go into detail. It’s crucial. So we’re imposing 100% tariffs on all the chips and semiconductors entering the US.”

“However, if you agree to build or are actively building—as many are—there will be no customs duties. If, for any reason, you decide not to build later on, we will reassess and possibly add those charges then. It’s a guarantee,” Trump explained.

The new $100 billion investment from Apple comes after a $500 billion commitment announced earlier in February, with plans to hire 20,000 employees in the US over the next four years. Additionally, the company aims to establish a new artificial intelligence server factory in Texas.