U.S. President Donald Trump announced on Friday that he will impose new tariffs on steel, semiconductors, and computer chips in the coming weeks, without specifying what tariff rate will apply to these products.
– Next week and the week after, I will determine tariffs on steel and, let’s say, chips – Trump told reporters on Friday during a flight to Alaska for a meeting with Russian President Vladimir Putin.
The new levies will initially be lower, allowing companies the opportunity to start production in the U.S., and will later increase significantly, the U.S. President stated, explaining that companies will certainly prefer to build facilities in the U.S. rather than pay high tariffs.
Trump had already announced 100 percent tariffs on Intel chips imported into the U.S. at the beginning of August, without specifying when this levy would take effect. He emphasized that the new levy would not apply to semiconductors from companies that have committed to starting production in the U.S.
At the same time, it was announced that Apple will invest an additional $100 billion in the U.S., Reuters notes.
If the tariffs on imported chips from major suppliers announced by the U.S. President on Friday are indeed implemented, American consumers will likely have to pay higher prices for all electronic products, as the chips used in them are primarily produced in Asia. For example, almost all high-tech chips needed for smartphones are produced in Taiwan.
In February, Trump raised tariffs on steel and aluminum imports to 25 percent, and in May he announced that he would double the rate to 50 percent to encourage domestic manufacturers. After Friday’s statement, it was not immediately clear whether a new increase in levies on these metals is planned.
