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During a meeting with Apple’s CEO Tim Cook, Trump revealed that this tariff would take effect, surprising financial markets which expected a 25%-50% increase. The administration has stated that companies such as Apple and NVIDIA are exempt from these tariffs due to their significant investments in the U.S.
In an update, President Trump clarified that TSMC and other major semiconductor manufacturers will not face this 100% tariff if they build facilities in the U.S. This is part of the administration’s strategy to ensure domestic production of critical technology, reducing reliance on foreign suppliers like Taiwan.
Domestic chip production has long been seen as a matter of national security by the Trump administration. The president has previously threatened Taiwan and accused it of stealing chip technology from the U.S., making an extreme tariff figure not entirely unexpected. However, the 100% rate is still surprising because it could render Big Tech unable to source semiconductors economically.
The U.S. government has been actively securing investments for setting up domestic semiconductor production facilities. TSMC, in particular, has pledged a $300 billion investment and is rapidly developing its Arizona facility. This underscores the need for an independent supply chain within the U.S., as importing chips now seems unfeasible.
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While details of these chip tariffs are still unclear, the administration is prioritizing domestic production. The scope of these tariffs may be limited in the future, but it’s evident that ensuring a secure and self-reliant semiconductor industry has become a top priority for the Trump administration.
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What tariff rate did Trump reveal during his meeting with Apple's CEO Tim Cook, surprising financial markets?
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