US President Donald Trump announced plans to impose a 100 per cent tariff on all imported semiconductors and chips in order to strengthen domestic production.
"A 100 per cent tariff (will be imposed) on all chips and semiconductors coming into the US. But if you've made a commitment to build (in the US), or if you're in the process of building (in the US), as many are, there is no tariff," the President said during a meeting in the Oval Office with Apple CEO Tim Cook. Companies such as Apple, Nvidia, and Taiwan Semiconductor Manufacturing Company (TSMC) that have pledged significant investments in US investment might benefit from the exemption if Trump follows through on his tariff threat.
The measure aims to push international tech companies to establish or expand manufacturing operations in the United States, and thereby reduce reliance on overseas supply chains. Trump noted that companies like Apple could benefit from the exemption because of their increasing investment in US based production.
President Trump said, "The good news for companies like Apple is if you're building in the US or have committed to build, without question, committed to build in the US, there will be no charge."
The 100 per cent tariff will apply to all imported semiconductors and chips, affecting major suppliers in Taiwan, South Korea, and Singapore. However,
Aparat from Apple's $100 billion and TSMC's $165 billion investment in US chip manufacturing, Nvidia and GlobalFoundries have also already pledged to manufacture some of their products in the U.S.
US government implemented a 25 per cent import duty on Indian goods, effective from August 7. Further, US President Trump citing India's purchase of crude oil and military hardware from Russia, threatened another 25 per cent tariff hike, effective from August 27.
Prime Minister Narendra Modi responded, saying the country would never compromise on farmers and fishermen's interests.
(With inputs from IANS)
