President Donald Trump announced a 100% tariff on imported semiconductors, exempting companies manufacturing or planning to manufacture chips in the US.
US President Donald Trump announced a 100% tariff on imported semiconductors on 6 August 2025, with a significant tariff exemption for companies manufacturing chips in the US or planning to do so.
The tariffs target semiconductor products imported from companies that do not have manufacturing facilities in the US.
This decision aligns with his push to boost domestic manufacturing and coincided with Apple’s announcement of an additional USD 100 billion investment in the US.
Trump’s announcement of a possible 100% tariff on semiconductors follows after the US levied 10%–50% on goods from multiple trading partners, including Brazil and India, which took effect on 7 August. The proposed chip tariff is tied to an ongoing national security probe, with results due by mid-August.
Trump’s comments drew swift reactions from chipmakers globally, except Korea (Rep.), which confirmed that its major chip manufacturers, such as Samsung and SK Hynix, will be exempted from the 100% tariffs. This follows after Korea (Rep.) has secured the ‘most favoured nation’ (MFN) status in the latest US–Korea trade deal, ensuring that tariffs on its semiconductor exports will not exceed those applied to other MFN countries.
Meanwhile, Taiwan’s National Development Council Minister Liu Chin-ching said Taiwanese firms are building US plants, acquiring local factories, and partnering with US chipmakers to mitigate potential chip tariffs.
Major Taiwanese chipmaker TSMC is expected to avoid significant impacts due to its US facilities, shielding customers like Nvidia from higher costs. Nvidia, a leading AI chipmaker, plans to invest heavily in the US.
The EU also secured a uniform 15% tariff for most exports, while Japan received assurances it would not face higher chip tariffs than other countries.
However, chips from China’s SMIC and Huawei are unlikely to be exempt from US tariffs.
