U.S. Imposes 100% Tariff on Imported Semiconductors; Apple Expands Domestic Investment

President Donald Trump has announced a 100% tariff on imported semiconductor chips, aiming to bolster domestic manufacturing. The tariff exempts companies that are building or have committed to build chip production facilities within the United States. During a White House event, Trump stated, "If you're building in the United States, or made a commitment to build or are in the process, there's no charge."

In conjunction with this policy, Apple CEO Tim Cook revealed an additional $100 billion investment in U.S. manufacturing over the next four years, increasing the company's total domestic investment commitment to $600 billion. This expansion includes partnerships with ten U.S. companies, such as Corning, Coherent, Applied Materials, Texas Instruments, and Broadcom, focusing on strengthening Apple's U.S. supply chain and increasing domestic production of iPhone components.

The semiconductor tariff is part of a broader strategy to encourage domestic chip production and reduce reliance on foreign supply chains. The United States currently produces about 12% of global semiconductor chips, down from 40% in 1990. The exact scope of chips affected by the new tariff is not yet clear.

Following these announcements, Apple's stock rose nearly 3% in extended trading, adding to its 5% advance from the regular session. Other tech companies with U.S. manufacturing commitments, such as Nvidia and Intel, also saw stock gains.