The news: President Donald Trump said he will enact 100% tariffs on all chips imported into the US, exempting companies that have promised to build 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 and jobs, bringing its total commitment to $600 billion, per The Financial Times.

Nvidia, Taiwan Semiconductor Manufacturing Co. (TSMC), and Samsung have already committed substantial investment in US manufacturing and jobs. The announcement gave all four companies an initial stock boost as trading opened Thursday.

How will it work? It’s unclear how Trump’s tariffs will be implemented, considering how far and frequently chips travel before being sold in US products.

• Chips may be built in Taiwan or South Korea, sent to another country like Malaysia for testing and processing, then put into consumer electronics in another location before being sold worldwide, per The New York Times.
• The administration could impose tariffs based on whether the manufacturer of a finished item has factories in the US, or it could inspect device parts to determine whether the chip maker itself builds in the US.

However, Trump’s chip tariff threat didn’t come as an executive order, leaving room for backtracking or changes to the duty rate.

Why it matters: Companies are jumping through Trump’s hoops to avoid chip duties, which could affect industries ranging from consumer electronics to automotive production.

These tariffs could alter product pricing, availability, and launch timelines, especially for brands that rely on chip-heavy products like smartphones or smart home devices.

Companies may emphasize “Made in America” narratives as consumers scrutinize product origins and whether tariffs are factored into the price they’re paying.

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.

Our take: Brands should prepare for new marketing challenges and opportunities tied to supply chain visibility, patriotic manufacturing narratives, and potentially longer product cycles if companies reshore production.

Keeping an eye on where key suppliers are building and how quickly they can pivot to US-based operations will be crucial in forecasting product costs and shaping future campaigns.