August 6,2025
RED FM News Desk
U.S. President Donald Trump announced on Wednesday that he will impose a 100 percent tariff on computer chips, which is expected to increase the prices of electronics, automobiles, household appliances, and other essential digital-age products.
“We’ll be putting a tariff of approximately 100 percent on chips and semiconductors,” Trump said during a meeting with Apple CEO Tim Cook in the Oval Office. “But if you’re manufacturing in the United States, there will be no charge.”
The Republican president clarified that companies producing computer chips domestically would be exempt from the import tax. During the COVID-19 pandemic, a chip shortage drove up car prices and contributed to overall inflation.
Global demand for computer chips has been rising steadily, with sales increasing by 19.6 percent in the year ending June, according to the World Semiconductor Trade Statistics organization.
Trump’s tariff plan represents a notable shift from previous efforts aimed at boosting U.S. chip production. Instead of financial incentives, he is opting for a stricter approach, hoping that higher chip costs will compel companies to build factories within the country. However, this strategy risks reducing corporate profits and raising prices on consumer electronics like smartphones, TVs, and refrigerators.
In contrast, the bipartisan CHIPS and Science Act, signed into law in 2022 by then-President Joe Biden, allocated over $50 billion to support new chip manufacturing plants, research initiatives, and workforce training. This combination of funding, tax credits, and incentives was designed to attract private investment—a method that Trump has publicly opposed.
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