Trump to set tariffs on microchips & semiconductors
Trump said. “And if they don’t build here, they have to pay a very high tariff, which doesn’t work, so they’ll have to come in and build.”
President Donald Trump has said new tariffs on steel and semiconductor chips will be introduced within the next two weeks, signalling a fresh escalation in the administration’s trade policy.
Speaking to reporters aboard Air Force One on Friday, Trump said tariffs on both steel and “chips and semiconductors” would be announced either next week or the week after. While he did not outline specific rates, he indicated that the initial tariffs would be set at a lower level to encourage companies to establish manufacturing operations in the United States, before rising significantly over time.
“I’m going to have a rate that is going to be lower in the beginning – then that gives them the chance to come in and build – and very high after a certain period of time,” Trump said. “And if they don’t build here, they have to pay a very high tariff, which doesn’t work, so they’ll have to come in and build.”
The comments follow remarks made by Trump last week, when he suggested tariffs on chips and semiconductors could be set at “approximately 100%”.
According to April 2025 data from the American Iron and Steel Institute, the largest sources of U.S. steel imports include Canada, Brazil, South Korea, Mexico and Germany. In semiconductors, key suppliers to the U.S. include Taiwan, Malaysia, Israel, South Korea and Ireland.
The announcement comes as the Trump administration begins implementing new tariffs following the expiry of an extended trade deal deadline. Several countries have moved quickly to secure agreements with Washington, including the European Union, which reached a deal to avoid a proposed 30% tariff on most exports to the U.S., instead accepting a reduced rate of 15%.
Project News