US EditionTrump: Chips to Be Taxed
UNITED STATES, AUG 6 – Trump aims to double the cost of imported chips to boost domestic production amid rising global demand and chip shortages, with chip sales up 19.6% in the past year.
- On Wednesday, August 6, 2025, President Donald Trump announced a 100% tariff on imported computer chips and semiconductors, sparing those produced domestically.
- This tariff threat breaks from prior bipartisan efforts like the 2022 CHIPS and Science Act, which provided over $50 billion to support U.S. chip production and training.
- The tariff aims to raise domestic manufacturing and national security but risks disrupting global supply chains and increasing prices for electronics, autos, and appliances reliant on chips.
- Chip sales rose 19.6% in the year-ended June 2025 amid strong global demand, while Apple expects $1.1 billion added costs and possible consumer price hikes if talks with the U.S. government fail.
- If imposed, the tariff could trigger retaliatory tariffs, escalate trade tensions, and pressure companies to build U.S. facilities, but shifting production from Asia remains challenging for firms like Apple.
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