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President Trump has clearly stated that his administration will impose tariffs on semiconductors under Section 232, but only if companies do not invest in the U.S. chip industry.
TSMC, Samsung, Micron & Many Firms Likely to be Excluded from Substantial Chip Tariffs
The Trump administration has been planning these chip tariffs for some time now. The Commerce Department is investigating which companies will be affected, and a dinner with tech CEOs revealed that the requirement is quite “strict.” The U.S. government will impose substantial tariffs on firms not yet willing to invest in the U.S.
Yeah, I have discussed it with the people here. Chips and semiconductors – we will be putting tariffs on companies that aren’t coming in. We will be putting a tariff very shortly. We will be putting a very substantial tariff, not that high, but fairly substantial tariff with the understanding that if they come into the country, there will not be a tariff.
– President Trump via Reuters
Under this requirement, several key chip firms are likely to be exempted under Section 232 tariffs. This includes TSMC, Samsung, SK hynix, Micron, and many others who are crucial parts of the supply chain. President Trump intends to impose up to “100% tariffs” on chip imports for companies not manufactured in the U.S.
Under the Biden administration, the CHIPS Act has provided tax incentives to boost U.S.-based chip production. However, under the Trump administration, the approach is much more aggressive, using trade as a tool. Interestingly, this tactic has worked well, with all major chip firms willing to invest “hundreds of billions” in the U.S. to support American chipmaking ambitions.
