'We'll be putting a tariff on of approximately 100% on chips and semiconductors,' says US president
President Donald Trump threatened 100% tariffs on imports of computer chips and semiconductors unless manufacturers commit to building their products in the US.
"We'll be putting a tariff on of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge, even though you're building and you're not producing yet, in terms of the big numbers of jobs, and all of the things that you're building. If you're building, there will be no charge," he said Wednesday.
It is unclear from the president's remarks how much of the products would need to be built in the US, or how far along construction would need to be on a US manufacturing plant, in order to qualify for an exemption to Trump's sector-specific tariffs. Still, he insisted that his forthcoming action would force companies to onshore production.
"I think the chip companies are all coming back home. They're all coming back," he said.
Chips and semiconductors are essential to just about every electronic used by Americans, ranging from cars to phones and computers. Imposing tariffs on the products could potentially see prices for many daily essentials skyrocket.
The president made the announcement as he hosted Apple CEO Tim Cook at the White House as the tech giant announced an additional $100 billion investment in the US, bringing its overall investment in the country to $600 billion over the next four years. Apple, Trump said, would be spared from the import duties.
"We're going to be putting a very large tariff on chips and semiconductors. But the good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge," Trump said.
