Josh Boak and Michael Liedtke, Associated Press
WASHINGTON (AP) — President Donald Trump said Wednesday that it aims to impose 100% tariffs on computer chips and increase the prices of electronics, automobiles, home appliances and other important products that rely on processors to power the digital age.
“We’re going to impose about 100% tariffs on chips and semiconductors,” Trump said in his oval office when he met with Apple CEO Tim Cook. “But if you’re built in the United States, there’s no fee.”
The announcement comes more than three months after Trump temporarily exempted most electronic devices from his administration’s most troublesome tariffs.
The Republican president said companies that make computer chips in the United States will be exempt from import taxes. During the Covid-19 pandemic, a shortage of computer chips has increased car prices, contributing to higher inflation.
Investors seem to interpret the potential tariff exemption as positive for Apple and other major tech companies that have made a significant financial commitment to manufacturing more chips and other components in the US.
Big Tech has already made a collective commitment to invest around $1.5 trillion in the United States since Trump returned to the White House in January. That figure includes a $600 billion promise from Apple after the iPhone maker boosted its commitment by tackling another $100 billion to its previous commitment in February.
Now, the question is whether the intermediary between Cook and Trump is enough to reduce pressure on the company to raise the prices of new models expected to be announced next month, and to isolate the pressure from tariffs that have reduced pressure.
Wall Street certainly seems to think so. After Apple’s stock rose 5% during Wednesday’s regular trading session, it rose another 3% in extended trading after Trump announced that he wouldn’t be hit by the latest tariffs while Cook stood with him.
Also, shares of AI chip maker Nvidia, which recently made a major commitment to the US, have risen slightly in extended transactions to increase the $1 trillion market value profits made by the Silicon Valley Company since the start of Trump’s second administration.
The share price of Computer Chip Pioneer Intel, which fell during difficult times, also rose in extended trading.
Enquiries sent to Chip Makers Nvidia and Intel were not immediately answered. The Semiconductor Industry Association, the leading trading group in the chip industry, declined to comment on Trump’s latest tariffs.
According to the global semiconductor trade statistics agency, demand for computer chips is rising worldwide, with sales increasing by 19.6% over the year in June.
Trump’s tariff threats mark a major break from existing plans to revive US computer chip production, created during President Joe Biden’s administration.
Since taking over from Biden, Trump has rolled out tariffs to encourage more domestic production. Essentially, the president bets that most companies will be forced to open factories domestically despite the risk that tariffs can squeeze corporate profits and boost prices for mobile phones, televisions and refrigerators.
In contrast, the bipartisan chips and science law that Biden signed into law in 2022 provided more than $50 billion to support new computer chip plants, fundraising and workers in the industry. The combination of fundraising support, tax credits and other financial incentives was intended to draw out private investment, a strategy Trump has spoken out against.
Liedtke was reported from San Ramon, California.
Original issue: August 6, 2025, 5:39pm EDT
