US President Donald Trump announced on Wednesday evening Eastern Time, that he would impose a 100% tariff on semiconductor imports, although there would be no tariffs that would be building or moving production back to the US.However, more details on how or what will a company need to do to qualify for the exemption remains unclear.
Trump had announced last week that he will be putting a “very large tariff” on Chips and Semiconductors.
“But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” he said.The announcement comes on the heels of iPhone manufacturer Apple vowing to increase its investments in the US by another $100 billion, including a new manufacturing program, that will bring production of the iPhone back to the US. Apple had previously vowed to increase investments in the US by $500 billion over the next four years, including some for a new manufacturing facility in Houston, a supplier academy in Michigan and additional spending with existing domestic suppliers.
Trump had announced last week that he will be putting a “very large tariff” on Chips and Semiconductors.
“But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” he said.The announcement comes on the heels of iPhone manufacturer Apple vowing to increase its investments in the US by another $100 billion, including a new manufacturing program, that will bring production of the iPhone back to the US. Apple had previously vowed to increase investments in the US by $500 billion over the next four years, including some for a new manufacturing facility in Houston, a supplier academy in Michigan and additional spending with existing domestic suppliers.
Most iPhones sold in the US come from India, while the bulk of other products, including Apple Watches, iPads and MacBooks, are manufactured in Vietnam, which was hit with a 20% tariff. Trump, on Wednesday night, increased the tariff on India to 50%, from 25% earlier. The first 25% comes in to effect today, while the remaining will take effect in three weeks from now.
