“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, if they are coming in, building, planning to come in, there will not be a tariff. If they are not coming in, there is a tariff.” said Trump during a dinner meeting with top tech CEOs.
US President Donald Trump announced on 4 September 2025 that his administration will impose tariffs on semiconductor imports from firms that do not relocate production to the US during a dinner meeting with top technology company CEOs.
He described the duties as “fairly substantial,” though not extremely high, and stressed they would not apply to companies already building or planning chip plants in the US. Firms like TSMC, Samsung, and SK Hynix have already announced US investments, which would shield them from the tariffs.
“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, if they are coming in, building, planning to come in, there will not be a tariff. If they are not coming in, there is a tariff.” said Trump.
Trump has previously floated a 100% tariff on semiconductor imports on 6 August 2025, exempting domestic manufacturers. However, his tariffs have faced legal issues.
On 29 August 2025, the US appeals court ruled that most of the tariffs imposed by the Trump administration were illegal, but allowed them to remain in place until 14 October to give the administration time to appeal to the Supreme Court.
Later, the Trump administration requested that the US Supreme Court review the case regarding the President’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on 3 September 2025.
Tariffs have been a cornerstone of Trump’s foreign policy, used to pressure trading partners and renegotiate trade deals, though they have also caused financial market volatility.
