Multiple reports suggest that President Donald Trump has declared that a specific tariff will be imposed on the semiconductor industry. The rate will be revealed within the next week.
The announcement, made during an interview with Fox Business, has sparked discussions across financial markets and the tech sector, given the critical role semiconductors play in global supply chains.
“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump wrote earlier Sunday.
“What has been exposed is that we need to make products in the United States, and that we will not be held hostage by other Countries, especially hostile trading Nations like China, which will do everything within its power to disrespect the American People. We also cannot let them continue to abuse us on Trade, like they have for decades, THOSE DAYS ARE OVER!”
Fox Business first reported Trump’s statement, noting that the tariff aims to address concerns about foreign competition, particularly in the semiconductor space, though specifics on the policy’s scope remain unclear.
The move comes amid broader trade policy shifts, as the White House recently exempted smartphones and computers from tariffs, providing some relief to consumer tech markets.
Reuters highlighted this exemption, suggesting it could buoy tech shares, but Trump’s pivot to targeting semiconductors introduces new uncertainty.
The Wall Street Journal contextualized the announcement within Trump’s broader trade agenda, pointing out that semiconductors are a strategic industry due to their use in everything from automobiles to defense systems.
Analysts quoted in the report expressed concern that tariffs could disrupt supply chains already strained by geopolitical tensions and chip shortages.
Meanwhile, Bloomberg noted mixed market reactions, with some investors optimistic about domestic chipmakers like Nvidia potentially benefiting, while others fear higher costs for manufacturers reliant on imported components.
Details on the tariff rate and implementation timeline are still forthcoming, leaving industry leaders and investors awaiting further clarity.
The New York Times reported that Trump’s focus on semiconductors aligns with efforts to bolster U.S. manufacturing, but critics argue it risks escalating trade disputes with key partners like Taiwan and South Korea, major players in chip production.
The Washington Post echoed this sentiment, citing experts who warn of potential retaliatory measures from affected nations.
