Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

President Donald Trump has announced that the United States will impose a 100% tariff on all imported semiconductors, a move aimed at reshoring chip manufacturing.

Some shit you should know before you read: If you’re unaware, the top three regions dominating global semiconductor production are Taiwan, South Korea, and mainland China, with Taiwan (home to TSMC) leading in advanced chip manufacturing. Over the past six years, there has been a growing international effort to reduce dependency on Taiwan due to rising geopolitical tensions and the looming threat of a possible Chinese invasion, which could severely disrupt global tech supply chains. In response to these risks, the United States has actively encouraged semiconductor companies to shift manufacturing back to American soil, citing national security concerns. To support this effort, President Biden signed the CHIPS and Science Act in 2022 (which had bipartisan support) and allocated over $52 billion in subsidies, tax incentives, and research funding to bolster domestic semiconductor production and reduce reliance on foreign supply sources.

What’s going on now: While speaking to reporters yesterday, President Trump confirmed a 100% tariff on all imported semiconductors and chips. The tariffs, he said, would apply broadly to foreign-made chips, but with one major exemption: companies that are already building or have committed to building manufacturing facilities in the US will not be subject to the new duties. “If you’re building in the United States of America, there’s no charge,” Trump said. “Even though you’re building and you’re not producing yet in terms of the big numbers of jobs and all of the things that you’re building. If you’re building, there will be no charge.”

Trump made it clear that the tariffs are not only about economics but also about holding companies accountable to their promises. “If, for some reason, you say you’re building and you don’t build, then we go back and we add it up, it accumulates, and we charge you at a later date,” he warned. “You have to pay, and that’s a guarantee.” He described the move as part of a broader industrial policy aimed at reversing decades of outsourcing and offshoring. “I think the chip companies are all coming back home,” he said. “They’re all coming back.”

The announcement was made during an event in the Oval Office, where Apple CEO Tim Cook was present to reveal a new $600 billion investment in the US. While no formal start date was provided for the implementation of the tariffs, Trump hinted at quick action and suggested that similar tariffs could be extended to other sectors, including pharmaceuticals.