Trump Signals 100% Tariff on Semiconductors, With Exemptions

Researched by Industrial Info Resources (Sugar Land, Texas)--President Donald Trump said Wednesday he planned to order a 100% tariff on imported semiconductors, but added that companies already building or planning to build semiconductor plants in the U.S. would be exempt.

The aim of the tariff would be to boost domestic production, but Trump's announcement led to questions regarding the specifics of the plan, which has yet to be officially unveiled.

Trump made his tariff remarks at the White House alongside Apple Incorporated (Cupertino, California) Chief Executive Officer Tim Cook, who was there to announce his company would invest an additional $100 billion in the U.S.

"We're going to be putting a very large tariff on chips and semiconductors," Trump said. "But the good news for companies like Apple, is if you are building in the United States or have committed to build without question, committed to build in the United States, there will be no charge."

Industrial Info is tracking 31 active capital semiconductor manufacturing projects in the U.S., worth $160.57 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.

Click on the image at right for a chart showing semiconductor project investments in the U.S. by market region.

Industry observers were left to wonder about the details of the planned tariff. For example, would it apply only to standalone semiconductors, or to imported products that contain semiconductors? Also, to what extent would a company have to build or commit to build in the U.S. to remain free of the tariff?

To be sure, overseas-based semiconductor manufacturers like Taiwan Semiconductor Manufacturing Company Limited (TSMC) (Hsinchu, Tawain) and U.S.-based companies like Micron Technology Incorporated (Boise, Idaho) already have committed to pouring large sums of money into U.S. production.

TSMC is constructing and planning $73 billion worth of expansions at its operations in Phoenix, Arizona. Subscribers can click here for the list of project reports.

Meanwhile, Micron Technology is constructing a $30 billion expansion at its Fab 4 Memory and Semiconductors Manufacturing Campus in Boise, Idaho. Industrial Info is tracking eight Micron Technology projects in Idaho, New York, Virginia and Colorado. Subscribers can click here for the list of project reports.

Apple's $100 billion pledge on Wednesday comes on top of a $500 billion commitment announced by the company in February. Subscribers can click here for a list of active projects directly attributed to Apple.

Trump's tariffs on countries across the world took effect on Thursday. He also has threatened to double tariffs to 50% on imports from India because it buys oil from Russia.

Meanwhile, Canada faces a 35% tariff on goods sent to the U.S. economy. Canada's economy is already impacted by tariffs on aluminum and steel, creating supply-chain pressures for everything from the automotive sector to pipelines. For more on that, see August 8, 2025, article - Canada Bracing for Tariffs, But Energy Spared So Far.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).