AsianFin -- U.S. President Donald Trump on Thursday warned he would soon impose tariffs on semiconductors again, while signaling new levies would not pose any negative impacts on companies building in the countries like Apple Inc.
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Trump said he will soon put a "fairly substantial tariff" on semiconductor exports to the United States. "We will be putting a tariff very shortly," Trump said at a White House dinner with tech industry executives. "Not that high, but fairly substantial tariff."
More than two dozens major tech leader joined in the dinner, including Apple CEO Tim Cook, Meta CEO Mark Zuckerberg and Oracle CEO Safra Catz. Trump singled Apple out as an example that would be spared the potential tariff costs. “Tim Cook would be in pretty good shape,” the president said.
It is not clear how the hefty semiconductor tariffs and exemptions would impact worldwide companies. Trump didn’t provide timetable of the new levy and offer few details on possible exceptions for companies investing in the U.S. He just said “if they’re coming in, building, planning to come in, there will not be a tariff.”
Trump last month repeated his pledge of semiconductor tariffs. On August 6, Trump said in the Oval Office that he will impose “a very large tariff” on semiconductors. The semiconductor tariffs would be around 100% and apply to all chips imported into the U.S. But for companies like Apple Inc. that pledge to build in the country, “there’s no charge,” according to the president.
"So 100% tariff on all chips and semiconductors coming into the United States. But if you've made a commitment to build (in the U.S.), or if you're in the process of building (in the U.S.), as many are, there is no tariff," Trump said.
Cook, speaking alongside Trump, confirmed reported additional $100 billion investment in U.S. "I'm glad to be here with you today, and I'm very proud to say that today, we're committing an additional $100 billion to the United States," Cook told Trump in the Oval Office. With the new commitment, Apple’s U.S. investment now totals $600 billion over the next four years.
Trump warned that companies would still face higher tariffs if they fail to live up to their pledge. "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, you have to pay, and that's a guarantee," Trump said.
More than a week later, Trump hinted the upcoming semiconductors levies could be as high as 300%.
“They’re all coming in ’cause they want to beat the tariffs,” Trump said aboard the Air Force One en route to Alaska for a meeting with Russian President Vladimir Putin. “If they don’t open here, they have to pay, in some cases, 200%, 300%. I haven’t even set some of the tariffs yet.” He said the duties will be lower at the beginning, and lifted to “very high after a certain period time.”
