Trump's Chip Tariff: US Manufacturing Commitment Could Be the Key to Avoid It
So, Donald Trump is back at it again, talking about tariffs, this time on chips and semiconductors. I have to admit, when I first heard about it, I thought, "Here we go again!". If you are not building chips in the US, you are probably going to be paying a hefty 100 percent tariff. It sounds like he's really trying to push manufacturing back to American soil.
However, there is a catch. It looks like if you are building or even *committing* to build in the United States, you might just get a pass. This is probably what Apple is aiming for. We've seen Tim Cook cozying up to Trump, announcing a big $100 billion US manufacturing plan. Now, Trump is hinting that Apple has done enough to avoid the tariffs. It makes you wonder, doesn't it? Is this a genuine effort to boost American manufacturing, or is it more about who you know?
It got me thinking about who this tariff would even apply to. Most of the big chip companies already have some kind of presence in the US. For example, TSMC, the Taiwanese giant, already announced a massive $100 billion investment in the US. So, is Trump targeting the chipmakers themselves, or is he going after the companies that *use* the chips? Apple, for instance, designs its own chips, but they rely on TSMC to actually manufacture them.
Of course, there is always the possibility that this is just another one of Trump's threats that never materializes. He's threatened tariffs on chips before, and they never actually happened. So, we'll have to wait and see if this one actually comes to fruition.
AMD's CEO, Lisa Su, mentioned that TSMC's US-made chips would cost them 5 to 20 percent more. It's obvious that making chips in the US comes at a premium. If those tariffs go up, that will affect the final consumer's pockets.
In any case, keep an eye on this one, folks. It could have a big impact on the tech industry and, ultimately, on the prices we pay for our favorite gadgets. It's kind of a wait-and-see game at this point!
Source: The Verge