Trump Proposes Up to 300% Tariffs on Semiconductors, Sparking Global Concerns

Former U.S. President Donald Trump recently announced plans to impose steep tariffs on semiconductor products within the next two weeks, with rates potentially reaching as high as 300%. The announcement has immediately drawn widespread attention across the global tech and manufacturing industries.

While traveling aboard Air Force One to Alaska for a planned summit with Russian President Vladimir Putin, Trump told reporters that he would introduce tariffs on steel, chips, and semiconductors “within the next two weeks,” noting that rates could be set at 200% to 300%.

This is not the first time Trump has floated such measures. Earlier, during an event with Apple CEO Tim Cook, he proposed a 100% tariff on semiconductors while pledging exemptions for companies relocating production back to the United States. Analysts believe these remarks signal his intent to significantly expand the U.S. tariff regime.

Policy Background

Since April, the U.S. Department of Commerce has launched an investigation under Section 232 of the Trade Expansion Act to assess the impact of imported semiconductors on national security and supply chain resilience. Trump explained that his tariff strategy would be implemented in stages: beginning with relatively low rates to encourage manufacturers to invest in U.S. facilities, followed by steep hikes to levels deemed unbearable, thereby forcing companies to establish production bases in the United States.

Reactions from Experts and Industry

Experts have expressed divided opinions on the plan. He Weiwen, Executive Council Member of the China Society for World Trade Organization Studies and Senior Fellow at the Center for China and Globalization (CCG), described the policy as a “double-edged sword.” While it may prompt some firms to invest in U.S. plants in the short term, it could also accelerate “de-Americanization,” with companies shifting more capacity toward overseas markets and reducing dependence on the U.S.

A previous report by the Boston Consulting Group also warned that forcing the semiconductor industry to reshore could cause the U.S. market share to fall to the world’s second or even third position. This is because the semiconductor supply chain is highly globalized, spanning design, equipment, materials, wafer fabrication, and packaging and testing. Any coercive policy could encourage other countries to accelerate the development of non-U.S. supply systems, further eroding America’s leadership in the global semiconductor market.

Conclusion

Although Trump has repeatedly suggested that these policies will be announced “within weeks,” the White House has yet to issue an official statement on semiconductor tariffs. The industry and international community are watching closely, as the move could have far-reaching consequences and potentially reshape the global semiconductor landscape.