Trump Announces Semiconductor Tariffs Up to 300 Percent

President Donald Trump is implementing a tiered trade strategy for the semiconductor industry, announcing import tariffs that could reach 200% to 300%. The policy aims to reduce reliance on foreign technology and incentivize the construction of domestic AI factories. Under this regime, tariffs will begin at lower rates to encourage investment, while companies that do not build in the U.S. will face the highest levies. Trump invoked Section 232 of the Trade Expansion Act of 1962, citing national security concerns following a Department of Commerce investigation.

Beyond import duties, the administration introduced a 15% export duty on shipments of previously banned U.S. technology to China, specifically targeting firms like Nvidia and AMD. This occurs alongside a broader "Turnberry system" of ad hoc tariffs on global partners, including 25% on India for Russian oil purchases and 39% to 50% on Switzerland and Brazil. Additionally, the Department of Commerce expanded 50% tariffs on steel and aluminum to include 407 derivative product codes effective August 18, 2025.

Industry reactions have been mixed. While the PHLX Semiconductor Index declined, Intel Corp. shares rose amid reports that the government may take an equity stake in the company using Chips Act funds. Conversely, the Semiconductor Industry Association and ASML Holding warned that these measures risk devastating the global supply chain and increasing costs for consumer electronics. Some firms, including TSMC and Apple, may receive exemptions due to substantial domestic manufacturing investments.