Washington, August 7 – US President Donald Trump has made headlines again with another significant trade-related announcement. After recently declaring a 25% tariff hike on Indian imports, which raised the total duty to 50%, Trump now plans to impose a 100% tariff on imported computer chips and semiconductors.
As per agency report, this latest move is expected to impact the prices of electronics, automobiles, household appliances, and several other essential goods in the United States. Industry experts anticipate that the proposed tariff could lead to increased costs for consumers due to higher manufacturing expenses for electronic devices.
However, in a partial relief, Trump stated that exemptions would be provided to companies that manufacture semiconductors within the United States. This means that businesses operating domestic production facilities may be spared from the hefty import duties.
The announcement came following a meeting between President Trump and Apple CEO Tim Cook in the Oval Office. Trump emphasized that the administration is preparing to implement approximately 100% tariffs on imported chips and semiconductors. At the same time, he reassured that companies investing in American production would not be subject to these charges.
If enacted, the new tariff policy could directly affect American consumers. With higher import costs, products such as smartphones, cars, and other chip-dependent electronic items are likely to become more expensive, as manufacturers may pass on the additional cost to end users.
The global demand for semiconductors has been on the rise, especially in the aftermath of the COVID-19 pandemic, which saw a significant shortage of chips worldwide. Industry observers fear that Trump's decision may once again trigger a supply crunch similar to that experienced during the pandemic years. Semiconductors are crucial components in modern automobiles, smartphones, and countless electronic devices, making them indispensable to the global economy.
With the increasing reliance on digital infrastructure and smart technologies, any disruption or cost hike in the semiconductor supply chain is likely to ripple across various sectors, both in the US and globally.
