Trump Announces Semiconductor Tariffs Up to 300 Percent

President Donald Trump is implementing a tiered trade strategy for the semiconductor industry, combining high import tariffs with export duties to force foreign companies to invest in domestic U.S. manufacturing. While initial proposals mentioned 100 percent tariffs, Trump later announced rates could reach 200 to 300 percent for companies that do not build facilities in the U.S. To justify these measures, the administration invoked Section 232 of the Trade Expansion Act of 1962, citing national security risks.

Simultaneously, the administration imposed a 15 percent export duty on shipments of previously banned U.S. technology to China by firms such as Nvidia and AMD. This is part of a broader, ad hoc trade approach termed the "Turnberry system," which includes tariffs on Switzerland, Brazil, and India. In other sectors, the Department of Commerce expanded 50 percent tariffs on steel and aluminum to include 407 derivative product codes effective August 18, 2025.

Industry reactions have been mixed. The Semiconductor Industry Association and the Korea Semiconductor Industry Association warned that these levies risk harming U.S. competitiveness. However, Intel Corp. shares rose amid reports that the administration is negotiating a federal equity stake in the company, potentially funded through the Chips Act. This follows a meeting between Trump and Intel CEO Lip-Bu Tan, occurring after Trump had previously demanded Tan's resignation over alleged conflicts with China.

Global firms like TSMC may receive exemptions due to existing investments in Arizona. Trump stated that tariffs would begin at a lower rate to give companies a chance to build domestically before ramping up to the highest levels.