- Trump adminstration is imposing 100% tariffs on semiconductors
- However TSMC looks to be exempt
- The news comes alongside a $100 billion Apple investment in US manufacturing
The Trump presidency has been underscored by consistent but evolving threats of tariffs on just about all trading partners and industries – and has now imposed a 100% tariff levy on semiconductors being imported into the US.
The tariffs will have an exception for firms that build in America, or have committed to do so, Reuters reports, perhaps obvious given the President’s ambition to bring tech manufacturing and development to home soil.
As with plenty of other Trump plans, these tariffs aren’t yet fleshed out, and their parameters are unclear. What is clear though, is the continued prioritisation of US firms over trade partners, despite the US’s limited chipmaking manufacturing capabilities.
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One key question is how TSMC will be affected – as the world’s largest chip manufacturer is based in Taiwan.
Since TSMC has factories in the US, it is set to receive an exemption from the tariff, news which prompted a 5% rise in the firm’s stock price.
Samsung and SK Hynix, two major South Korean firms, are also said to be exempt, with South Korea benefiting from favorable trade deals between Washington and Seoul.
Also apparently exempt is Apple, as the tariff announcement comes alongside the news that the tech giant will be investing a whopping $100 billion into the US market
This move brings Apple’s total pledge to $600 billion following an earlier commitment to invest $500 billion and hire 20,000 US workers in the next four years.
“Companies like Apple, they’re coming home. They’re all coming home,” President Trump told the press, confirming Apple’s plans to expand its supply chain and manufacturing capabilities.
“$600 billion, that’s the biggest there is.” he continued, “The company is also unveiling its ambitious new American manufacturing program which will bring factories and assembly lines across our country all roaring to life.”
