Washington: U.S. President Donald Trump announced that his administration will impose a tariff of approximately 100 percent on semiconductors, a policy expected to have significant effects on South Korea's chip industry. The announcement was made during a White House event where Trump unveiled Apple Inc.'s substantial investment plan, which has been closely monitored by South Korean tech giants Samsung Electronics Co. and SK hynix Inc.
According to Yonhap News Agency, Trump declared that any company producing chips within the United States would be exempt from this tariff. "We'll be putting a tariff of approximately 100 percent on chips and semiconductors," he stated, emphasizing that companies manufacturing in the U.S. would incur "no charge."
The tariff policy, invoking Section 232 of the Trade Expansion Act of 1962, grants the president authority to adjust imports that could threaten national security. Trump did not specify the implementation date for the new tariff but mentioned in a CNBC interview that he plans to announce sector-specific tariffs "within the next week or so."
During the event, Trump also highlighted Apple CEO Tim Cook's announcement of an additional US$100 billion investment in the U.S., supplementing a previous $500 billion commitment. This investment, according to Trump, will create over 20,000 new American jobs and benefit Apple suppliers, including Corning, Broadcom, Texas Instruments, and Samsung.
In related developments, Apple disclosed a partnership with Samsung at its Austin, Texas facility to develop an "innovative new technology" for chip manufacturing, which Apple claims is unprecedented globally.