US President Donald Trump has announced his intention to impose a 100% tariff on semiconductor imports, but has promised to exempt companies that move production back to the United States.
US President Donald Trump has announced his intention to impose a 100% tariff on semiconductor imports, but has promised to exempt companies that move production back to the United States.
According to Bloomberg, Apple has pledged an additional $100 billion in investment, which will include a new manufacturing program. As part of this program, partners, including glass maker Corning Inc. and others, will increase production in the United States. In particular, Corning will dedicate an entire factory in Kentucky to making glass for Apple, which will increase the company's workforce in the state by 50%.
Trump also warned that he could impose separate tariffs on all electronic products containing semiconductor chips, from smartphones to cars.
Although the US president previously criticized Apple and even threatened to impose a 25% tariff on iPhones manufactured outside the US, Donald Trump has now singled out Apple as an example of how to avoid increased tariffs, encouraging other companies to make similar investments.
Other major players have also decided to follow Trump's encouragement. Taiwan's National Development Council Minister Liu Chin-ching said TSMC would be exempt from the tariffs. South Korean Trade Minister Yoo Han-koo said chips from Samsung Electronics and SK Hynix would also be exempt from the tariffs because both companies have committed to investing in the United States.
