US President Donald Trump emphasized a threat to implement substantial import tariffs on chip manufacturers that do not relocate production to the nation, Reuters stated, adding further uncertainty to firms’ long-term supply chain strategies.
Trump directly said, “if they are entering, constructing, intending to enter, there will be no tariff.” “The news agency reported, ‘If they don’t come in, there is a tariff.’”
In early August, Trump cautioned businesses that the US would impose 100 percent tariffs on chip imports; however, he specified that chipmakers with operations in the country or intentions to construct would be free from the suggested duty.
The biggest semiconductor firms, such as Taiwan Semiconductor Manufacturing Co, Samsung, and SK Hynix, operate factories in the US and have pledged to grow their operations due to pressure from the administration.
The president is now awaiting a Supreme Court ruling on a lower court’s decision that deemed most of his extensive trade tariffs unlawful.
