U.S. President Donald Trump announced a new 100% tariff on all imported semiconductor chips from countries not producing in the U.S. or planning to do so. The tariff will exempt companies that have committed to or are currently building chip factories in the U.S.
Trump emphasized that if companies falsely claim they are building facilities, they will be charged retroactively. It remains unclear how many chips the tariffs will affect.
The move follows a $52.7 billion subsidy program launched by Congress in 2022 to boost domestic chip production. Under President Biden, five major semiconductor firms had already agreed to set up U.S. manufacturing plants. The U.S. currently produces only 12% of the world’s chips, down from 40% in 1990.
Credit: CGTN
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