President Trump said that he will implement a 100% tariff on semiconductors manufactured overseas unless the companies have committed to build in the US.
Trump made the announcement during a press event in the Oval Office alongside Apple (AAPL) CEO Tim Cook, who was on hand to unveil an additional $100 billion investment in research and manufacturing in the US.
“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,” Trump said.
The semiconductor tariff is a part of the Trump administration’s Section 232 national security investigation into chip manufacturing.
According to Trump, if a company says it will build in the US, but doesn’t, it will once again face tariffs as well as back tariffs.
Read more: The latest news and updates on Trump’s tariffs
The tech industry has been waiting on tenterhooks to find out what semiconductor tariffs would look like, and whether they would apply to individual semiconductors or to chips built into devices. Additional tariffs could drive up the price of everything from smartphones and laptops to home electronics and more.
Apple is also expected to dodge Trump’s newest tariffs on India, which could reach as much as 50% in three weeks, with a White House official saying that the company wouldn’t have to deal with the bulk of the tariffs.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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