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Washington: In what can lead to higher prices for electronics, autos, household appliances, US President Donald Trump announced on Wednesday to impose a 100 per cent tariff on computer chips.
Trump made the comments while meeting Apple CEO Tim Cook. The US president, however, said that if the tech companies are ready to manufacture chips in the US, the higher tariffs will not ne imposed.
"We will be putting a tariff of approximately 100 per cent on chips and semiconductors," Trump said in a meeting with the Apple CEO at the Oval Office.
"But if you are building in the United States of America, there is no charge,” Trump added.
Notably, the shocking announcement comes after three months when President Trump had temporarily exempted most electronics from his most onerous tariffs.
Trump categorically stated that companies willing to manufacture chips in America would be spared the import tax. Notably, a shortage of computer chips during the COVID-19 pandemic had resulted in inflated prices of autos and also led to higher inflation.
News agency AP reported that investors are expecting Trump’s latest move as a positive for Apple and other major tech companies that have committed to build more chips and other components in the US.
Big Tech has assured to invest about USD 1.5 trillion in the US after Trump assumed presidency. However, the big question is whether the deal brokered between Cook and Trump will exempt millions of iPhones made in China and India from the tariffs. Notably, Apple is expected to launch new models in September 2025.
Meanwhile, shares of Apple and AI chipmaker Nvidia gained as they recently made big commitments to the US.
According to the World Semiconductor Trade Statistics organisation, the demand for computer chips has been increasing across the globe, with sales surging 19.6 per cent in the year-ended in June.
Ever since Trump came to power, the US president has been deploying tariffs to incentivise more domestic production.
