President Donald Trump announced a 100% tariff on all imported computer chips and semiconductors Wednesday. The move aims to reshore critical technology production and reduce dependence on foreign supply chains.
The announcement came during a White House event alongside Apple CEO Tim Cook. Cook unveiled a massive $100 billion expansion of Apple’s U.S. manufacturing investment.
“We’ll be putting a tariff, approximately 100%, on chips and semiconductors,” Trump declared in the Oval Office. He added that companies actively building or transitioning chip production to the U.S. would be exempt.
“If you’re building in the United States of America, there’s no charge,” Trump said. “Even though you’re building and you’re not producing yet in terms of the big numbers of jobs and all of the things that you’re building… If you’ve made a commitment to build, or if you’re in the process of building, as many are, there is no tariff.”
The president said the tariffs were necessary to hold foreign and domestic firms accountable for outsourcing. He said the goal is to push companies to bring production back home.
“If, for some reason, you say you’re building and you don’t build, then we go back,” Trump warned. “We add it up, it accumulates, and we charge you at a later date. That’s a guarantee.”
Trump cited companies like Taiwan’s TSMC, which is building large-scale facilities in Arizona. He said these firms may avoid the tariff due to their American investments.
“I think the chip companies are all coming back home,” Trump said. “They’re coming back very rapidly.”
The announcement was paired with Apple’s pledge to invest another $100 billion in domestic manufacturing over the next four years. This new commitment follows a $500 billion promise made earlier this year.
In total, Apple says it will invest $600 billion in the U.S. The tech giant said the funds would support its “American Manufacturing Program,” which aims to increase production of key components on American soil.
“It’s the biggest investment Apple has ever made in America and anywhere else,” Trump said. He then took a swipe at Cook. “As you know, Apple has been an investor in other countries a little bit – I won’t say which ones, but a couple. And they’re coming home.”
Cook outlined plans to partner with ten U.S.-based companies. These include Corning, Coherent, GlobalFoundries, Broadcom, and Texas Instruments.
Apple pledged $2.5 billion to Corning’s Kentucky plant. The money will go toward producing 100% of the cover glass for iPhones and Apple Watches in the U.S.
“President Trump’s America First economic agenda has secured trillions of dollars in investments,” White House spokesperson Taylor Rogers said. “These investments support American jobs and bolster American businesses.”
“Today’s announcement with Apple is another win for our manufacturing industry,” Rogers added. “It will help reshore the production of critical components to protect America’s economic and national security.”
Despite the celebratory tone, some critics expressed doubt about Apple’s long-term follow-through. A former Trump administration official noted that Apple had delayed construction projects in the past.
“This is an old playbook,” the official told the New York Post. “To distract from Apple’s reliance on China and entanglement with the CCP, Tim Cook makes promises to build in America. If past is prologue, they won’t deliver on these promises.”
Trump has long pressured Apple to reduce its foreign manufacturing footprint. He has been especially critical of the company’s growing shift toward India.
In May, Trump said he told Cook, “We’re not interested in you building in India… we want you to build here.”
Apple shares rose 5.1% following the announcement. They closed at \$213.28.
Trump did not specify when the 100% semiconductor tariff will take effect. He also previewed similar tariffs for pharmaceutical imports and lumber.