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The US chip tariff figure could rise to as high as 300%, according to President Trump, who aims to strengthen America’s domestic semiconductor supply chain.
**The Trump Administration Is Considering Hefty Chip Tariffs Under Section 232**
President Trump has indicated that hefty chip tariffs under Section 232 are likely. The proposed figure might be three times higher than what was previously suggested. Although the US government has been inconsistent on tariff figures, this matter is of serious concern to President Trump, making a high tariff on chips not out of the question.
Here’s what he said while seated in Air Force One:
> “I’ll be setting tariffs next week and the week after, on steel and, I would say, chips — chips and semiconductors. We’ll be setting this sometime next week or the week after. The rate will be 200%, 300%?”
Such a high tariff would likely devastate the chip industry as firms cannot afford such taxes, especially smaller ones. Under Section 232, goods that threaten national security are restricted, and semiconductors have been included in this list.
**Workaround for Avoiding Chip Tariffs**
Firms can avoid these tariffs by making massive investments worth at least “tens of billions.” In a previous report, TSMC, Samsung, SK Hynix, Apple, and NVIDIA were exempted from chip tariffs due to their commitment to US manufacturing. It seems the Trump administration is willing to provide relief for those looking to bring production lines into America.
**Section 232 Investigation Could Conclude by August**
Tech industry players should prepare for significant changes in supply chains once the Section 232 investigation concludes, which could be by the end of August.
