Trump unveils 100% semiconductor tariff, but offers full exemptions to U.S. investors like Apple
- President Donald Trump announced a proposed 100 percent tariff on foreign-made semiconductors but offered exemptions for companies actively investing in U.S. manufacturing.
- India, a key iPhone assembly hub, faces phased 50 percent tariffs, while Vietnam, which produces iPads and MacBooks, is already subject to a 20 percent tariff. Additional levies on semiconductor-containing products may follow.
- Flanked by Tim Cook, Trump highlighted Apple’s expanded $100 billion domestic investment, raising its total U.S. commitment to $600 billion, including new manufacturing programs and supplier partnerships.
- Companies like Apple that are building or have committed to build in the U.S. will be exempt from the tariffs, even if production hasn’t yet begun.
- Apple’s exemption is seen as a win after Cook’s lobbying efforts, but economists question whether many CEOs’ post-election investment pledges, often pre-planned, will truly result in new jobs or facilities.
President Donald Trump has announced new tariffs targeting semiconductor imports, unveiling a proposed 100 percent levy on foreign-made chips, but offering full exemptions to companies like Apple Inc. that commit to U.S.-based manufacturing.
On Aug. 6, Trump announced his plan to impose semiconductor tariffs on global production hubs that power the electronics industry. India, a major Apple production partner, faces a two-phase 50 percent tariff, with half already taking effect, while Vietnam, where Apple manufactures iPads and MacBooks, is already subject to a 20 percent import tariff. Additionally, Trump has threatened to impose additional levies on any product containing semiconductors, possibly as early as next week. (Related: U.S. tariffs inflict huge blow on German automakers.)
However, Trump has signaled that exemptions will hinge on whether companies are actively investing in U.S. production, even if full-scale manufacturing hasn’t yet started.
In line with this, Trump, flanked by Apple CEO Tim Cook in the Oval Office, announced Apple’s new $100 billion investment plan in American manufacturing. The expanded $100 billion commitment builds on an earlier pledge to spend $500 billion over four years in the U.S., bringing its total planned domestic investment to $600 billion.
New spending will include a U.S. manufacturing program that ropes in suppliers like Corning Inc., Texas Instruments and Applied Materials; a dedicated Corning facility in Kentucky for Apple glass production, increasing that plant’s workforce by 50 percent; and ongoing expansion of Apple’s supply chain footprint across states like Texas and Michigan.
Trump then offered full exemptions to companies like Apple Inc.
“We’re going to 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,” Trump said. “So in other words, we’ll be putting a tariff of approximately 100 per cent on chips and semiconductors. But if you’re building in the United States of America, there’s no charge. Even though you’re building and you’re not producing yet, in terms of the big numbers of jobs and all of things building, if you’re building, there will be no charge.”
Still, Apple has not fully committed to moving final iPhone assembly out of Asia.
CEOs race to align with Trump amid tariff threats
Apple is far from alone in courting the administration.
Since Trump’s 2024 presidential victory, dozens of CEOs have visited Mar-a-Lago and the White House to align with the new administration and unveil hundreds of billions of dollars in new spending commitments.
However, many of these announcements had been planned before the election or are consistent with existing investment patterns. Economists have also raised doubts about whether all the promised spending and the jobs tied to it will ultimately materialize.
In other words, the announcement marks a significant win for Apple and Cook, easing mounting pressure from Trump’s escalating tariff threats that had risked sharply increasing the cost of producing the company’s flagship devices. Cook, who attended Trump’s inauguration and contributed to his inaugural committee, has actively lobbied for tariff exemptions on Apple’s iPhones.
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Sources include:
ZeroHedge.com
StraitsTimes.com
Brighteon.com
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