Trump to impose 'fairly substantial' tariffs on semiconductors soon
What's the story
President Donald Trump has announced plans to impose tariffs on semiconductor imports "very shortly." However, he said that companies like Apple Inc., which have promised to increase their investments in the US, will be spared from these levies. The announcement was made during a White House dinner with top executives and founders of some of the world's biggest tech companies.
Tariff details
'We'll be putting tariffs on companies that aren't coming in'
Trump said, "I've discussed it with the people here, chips and semiconductors, and we'll be putting tariffs on companies that aren't coming in." He added that a "fairly substantial tariff" would be imposed soon. However, he clarified that if companies are coming in to build or plan to come in, there won't be any tariff.
Investment impact
Last month, Trump announced a 100% tariff on semiconductors
Last month, Trump had announced a 100% tariff on semiconductors but exempted products from companies shifting their manufacturing to the US. Apple has recently committed to investing $600 billion in a domestic manufacturing initiative. This huge investment commitment is likely to save Apple from the upcoming semiconductor tariffs.
Trade tactics
Trump's tariffs as a tool of US foreign policy
Trump has long used tariffs as a tool of US foreign policy, using them to exert political pressure, renegotiate trade deals, and extract concessions from countries and companies exporting goods to the US. However, his tariff threats have also alienated trading partners, caused volatility in financial markets, and increased global economic uncertainty.
Court battles
Legal challenges over his tariff policies
Trump has faced legal challenges over his tariff policies. His administration has requested the US Supreme Court to expedite a case seeking to uphold his sweeping tariffs under a 1977 law intended for emergencies. This comes after a lower court struck down most of the levies that have been key to his economic and trade agenda.