Trump's Massive Tariff Move on Semiconductor Chips

In a bold economic policy shift, President Donald Trump announced that the United States will enforce a hefty 100% tariff on imported semiconductor chips, specifically targeting countries that either do not produce in America or do not have plans to start. The announcement took place in the Oval Office with Trump highlighting that only firms committed to building in the U.S. will be exempt from this tariff.

This decisive action comes as a follow-up to the $52.7 billion semiconductor subsidy program unveiled by Congress in 2022. Under the leadership of President Joe Biden, the Commerce Department successfully persuaded leading-edge semiconductor companies to establish manufacturing plants in the U.S., with the country currently holding a mere 12% of global production.

Trump articulated a clear warning for firms that pledge U.S. production but fail to deliver. He stated that any unfulfilled commitments would result in retroactive penalties, reinforcing the government's intention to boost domestic manufacturing.

(With inputs from agencies.)