Apple will get an exception: Trump announces 100% duty on chip imports

President Donald Trump has announced a 100% duty on semiconductor imports. This does not apply to companies like Apple that manufacture products in the US or have committed to do so.

According to Reuters, the introduction of the duty is related to Trump’s efforts to bring electronics manufacturing back to the United States. The statement was made simultaneously with the announcement of Apple about additional investments in “home” production in the amount of $100 billion. The President confirmed to reporters in the Oval Office that the duty will not be levied on companies that have or have committed to establishing production in the United States. However, he warned that companies should not try to avoid their obligations.

Representatives of other countries commented on the introduction of the duty. South Korea’s chief trade representative said that Samsung Electronics and SK Hynix will receive exemptions from the tariff, and his country will have the most favorable duties on semiconductors under the Washington-Seoul trade agreement.

However, the president of the Philippine semiconductor industry, Dan Lacica, said that the duties would be devastating for the Philippines. Malaysia’s trade minister, which is a major global player in the chip testing and packaging markets, warned parliament that the country «risks losing a large market in the United States if its products become less competitive as a result of these tariffs».

Minister of the National Development Council of Taiwan Liu Ching-ching told reporters that Taiwanese companies are building factories in the United States or buying existing production, as well as cooperating with American chipmakers to counter potential tariffs on chips. Taiwanese contract chip maker TSMC is likely to avoid the new dutyas it has plants in the US. Accordingly, its key customers, such as NVIDIA are unlikely to face any fee increases due to the duties.

Analysts predict that only the largest companies will be able to overcome the new tariff due to the opening of expensive production in the United States. At the same time, due to large investments, the country’s semiconductor industry may be significantly exempt from taxation. Chinese companies such as SMIC or Huawei are unlikely to receive an exemption. Also, the new duty will be applied together with the tariffs already imposed on China.