| | | Trump vows 100% tariff on chips, unless companies are building in the U.S.
This one is going to be impossible to implement.
Any device or system maker building in the USA will be penalized for importing components from abroad. It kills the build in the USA goal until all the components are made domestically, which would be a decade long project.
If he means companies that build devices or systems in the USA are exempt from the semiconductor tariff, well, that's all semiconductor importers. Few companies import semiconductors into the USA and fail to build something with those semiconductors.
What does Apple have to do with it? They make a lot of their own semiconductors, yes, overseas, yes, and because they're going to build something (I think it was smart glasses?) in the USA, all Apple imports of Apple semis are exempt? What about Apple imports of NAND memory made in Korea by SK Hynix? Is that exempt?
SIMO sells some semiconductors to Tesla who builds cars in the USA. Is Tesla going to be penalized because SIMO makes their semis (like everyone else) at TSMC? Or is Tesla's purchase of SIMO semis exempt from this tariff because Tesla is "building in the USA".
It's hard to believe they thought about this one for an extended period because it's complex, and then when they announce it it's vague and makes little sense.
It's hard to tariff components imported into the USA and encourage manufacturing in the USA. Those two have opposite effects. |
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