Trump Signals Tariffs on Foreign-Made Semiconductors Could Be Coming Soon
While semiconductors were initially spared from President Trump’s reciprocal tariff plan, that exemption may not last much longer.
Speaking to reporters aboard Air Force One, Trump confirmed that tariffs on foreign-made chips are still on his agenda. “The chips are starting very soon,” he said, indicating that the tech industry should prepare for new trade restrictions.
Semiconductors, along with lumber and pharmaceuticals, were among the key imports that avoided the initial wave of tariffs. However, Trump made it clear that each of these industries will face scrutiny. “We are looking at pharma right now, pharmaceuticals, as a separate [tariff] category,” he stated, adding that a review is already underway.
The exact tariff rates on these sectors remain uncertain, though Trump has previously suggested that semiconductors could see duties as high as 25% or more.
In the meantime, the PC and electronics industries are still adjusting to the broader trade measures. Trump’s plan includes significant tariffs on imports from Taiwan, Vietnam, India, Malaysia, and Cambodia—nations that play a crucial role in manufacturing computer components, gaming consoles, and smartphones.
Additionally, Trump has imposed an extra 34% tariff on Chinese imports, increasing the total tariff burden on those goods to 54%. A baseline 10% tariff on affected countries is set to take effect on April 5, with further increases rolling out on April 9. Notably, Canada and Mexico are not included in the new tariff scheme.
The administration argues that these tariffs are necessary to incentivize companies to shift manufacturing to the United States. However, industry analysts warn that the policy will likely drive up prices for a wide range of electronics. One expert estimates that Apple may need to raise iPhone prices by anywhere from $300 to $700, depending on the model, to offset the costs. The highly anticipated Switch 2 gaming console could also see significant price hikes, as Nintendo relies on manufacturing in Vietnam and Cambodia—two countries that will face tariffs of 46% and 49%, respectively, under Trump’s plan.
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