Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al-Mashat: I call on everyone worldwide to avoid dealing with any assets of the entity, and there is still an opportunity for settlers to return to their countries
Al-Mashat: A final warning to all companies in the occupation entity to leave before it’s too late
The Israeli occupation army carries out a deadly airstrike on a populated residential building in the densely populated al-Rimal neighborhood, west of Gaza City, resulting in dozens of fatalities and injuries: Al Mayadeen's correspondent
Al-Mashat: We say to Gaza, we stand firm regarding our stance, no matter the sacrifices
Al-Mashat: We will meet challenge with challenge, and you will no longer have any sense of security
Al-Mashat: We say to the Zionists, our revenge is unyielding, and dark days await you
Al-Mashat: We will take revenge, and we will come out victorious from the depths of our wounds
Al-Mashat: Our people are capable of overcoming all difficulties and challenges, and the enemy will not be able to break our steadfastness, nor will we be intimidated by raids or terrified by threats
President of the Yemeni Supreme Political Council Mahdi al-Mashat: The Government of Change and Building will carry out its duties in a caretaker capacity, and the blood of the martyrs will serve as a motivation for steadfastness and reconstruction
The Yemeni presidency mourns Yemeni Prime Minister, Ahmad al-Rahawi, and several other ministers in the Israeli aggression on Thursday

Trump slaps 100% semiconductor tariffs, barring US-based manufacturers

  • By Al Mayadeen English
  • Source: News websites
  • 7 Aug 2025 09:51
4 Min Read

Trump announces 100% semiconductor tariffs, sparing firms with US investments like Apple and TSMC.

Listen
  • x
  • President Donald Trump visits the Federal Reserve, on July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)
    US President Donald Trump visits the Federal Reserve on July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

US President Donald Trump announced plans to impose a 100% tariff on imported semiconductors, excluding companies that are either manufacturing in the US or have committed to doing so, Reuters reported on Wednesday. The initiative is part of a broader effort to bring high-tech manufacturing back to US soil.

Speaking from the Oval Office on Wednesday, Trump clarified that companies like Apple would be exempt from the new tariff. Apple has pledged to invest an additional $100 billion in the US, expanding its domestic production footprint.

"For companies like Apple, which have committed to build in the United States, there will be no charge," Trump told reporters. He also warned companies against reneging on such commitments. "If, for some reason, you say you're building and you don't build, then we go back and we add it up, it accumulates, and we charge you at a later date… that's a guarantee," he added.

While impactful, Trump’s comments did not amount to a formal policy announcement. The specifics of how these tariffs would be applied remain unclear.

Companies with significant US-based operations, such as Apple and Taiwan’s TSMC, are expected to avoid the proposed 100% import duty. TSMC operates manufacturing facilities in the US, which positions major clients like Nvidia to bypass additional tariff costs.

Read more: China summons chip giant Nvidia over alleged security risks

Global reactions

Trump’s remarks triggered swift international responses. South Korea’s trade envoy stated that chip giants Samsung Electronics and SK Hynix would not face the new tariffs, thanks to favorable terms under an existing trade agreement with Washington.

Japan confirmed that it would not face harsher tariff conditions than other nations. Meanwhile, the European Union reported an agreement with the US for a flat 15% tariff on most exports, including semiconductors, cars, and pharmaceuticals.

Related News

India will not 'bow down' to pressure: Trade Minister

US Court rules Trump's tariffs are mostly illegal

In Southeast Asia, industry figures voiced strong concerns. Dan Lachica, president of the Philippine semiconductor industry, warned that Trump’s plan could be "devastating" for his country’s exports.

In Malaysia, Trade Minister Tengku Zafrul Aziz cautioned that his country could lose access to a key market if its semiconductor products became less competitive under the proposed tariffs.

Market impact, industry response

Nvidia, a leader in artificial intelligence and graphics processing units, is planning to invest hundreds of billions of dollars in US-based chip production over the next four years. Though the company declined to comment on Trump’s announcement, its positioning within the US market is expected to mitigate the effects of the proposed tariff.

Brian Jacobsen, chief economist at Annex Wealth Management, remarked, "Large, cash-rich companies that can afford to build in America will be the ones to benefit the most. It's survival of the biggest."

Asian semiconductor firms with investments in the US experienced a boost in share prices. TSMC and Samsung rose 4.4% and 2% respectively. Silicon wafer producer GlobalWafers, which operates a Texas facility, saw its stock surge by 10%.

While Samsung and TSMC offered no comment on the announcement, GlobalWafers stated it has adopted cost-cutting measures to maintain its competitiveness amid policy uncertainty.

Economic implications

The Biden administration previously introduced a $52.7 billion subsidy program to support semiconductor manufacturing and research. As part of that initiative, the Commerce Department persuaded five leading-edge chipmakers to establish US-based factories.

Despite these efforts, US production accounted for only 12% of the global chip supply last year, down from 40% in 1990.

Martin Chorzempa of the Peterson Institute for International Economics noted, "There's so much serious investment in the United States in chip production that much of the sector will be exempt."

Chorzempa also pointed out that Chinese companies like SMIC and Huawei are unlikely to qualify for exemptions. However, since their chips are mostly embedded in devices assembled in China, a lack of corresponding component tariffs might limit the effectiveness of Trump’s proposed measures.

Read more: Huawei's chip breakthrough makes Apple in China vulnerable

  • US tariffs
  • United States
  • AI chips
  • TSMC
  • trump tariffs
  • trade war
  • semiconductors
  • Apple
  • Nvidia
  • Donald Trump

Most Read

Tom Barrack's imperial tantrum in Beirut: When entitlement speaks (Photo by Mahdi Rtail)

Tom Barrack's imperial tantrum in Beirut: When entitlement speaks

  • Politics
  • 26 Aug 2025
Fierce resistance ambushes target IOF in Gaza Strip

Fierce resistance ambushes target IOF in al-Zaytoun, Gaza City

  • Politics
  • Today
Although it does seem likely they will launch some kind of operation in northern Gaza, one which will accelerate its mass murder of civilians, but will fail to achieve its stated objectives. (Al Mayadeen English; Illustrated by Batoul Chamas)

Here is why the Israeli occupation of Gaza won’t work

  • Opinion
  • 26 Aug 2025
A scene showing an al-Qassam Brigades fighter during an ambush on July 7, 2025, in a video released by the al-Qassam Brigades on August 26, 2025 (al-Qassam Brigades Military Media)

Al-Qassam reveals Beit Hanoun ambush targeting Israeli forces

  • Politics
  • 26 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Iran slams E3 snapback bid, backs Russia-China nuclear plan
Politics

Iran slams E3 snapback bid, backs Russia-China nuclear plan

Palestinian President Mahmoud Abbas addresses the 77th session of the United Nations General Assembly on Sept. 23, 2022, at the U.N. headquarters. (AP)
Politics

France slams US over Palestinian Authority visa ban to UN summit

IRGC foils Mossad plot, captures 8 in Mashhad
Politics

IRGC foils Mossad plot, captures 8 in Mashhad

Piyush Goyal in an undated photo (Sajjad Hussain/AFP/Getty Images)
Politics

India will not 'bow down' to pressure: Trade Minister

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS