The news: President Donald Trump said he will enact 100% tariffs on all chips imported into the US, exempting companies that promised to or have begun building in the US. The plan was announced during a White House meeting with Apple CEO Tim Cook, who said Apple will invest another $100 billion in US manufacturing.
Our first take: Companies are jumping through Trump’s hoops to avoid chip duties, which could affect industries ranging from smartphones and automotive production to AI development.
The announcement’s effect on global supply chains will likely be significant, driving an accelerated reshoring of chip manufacturing and heightened pressure on foreign semiconductor producers. We should expect continued market volatility and a sharper geopolitical divide between makers in the US and Asia, the latter of which could see business and demand wane unless they quickly adapt.
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