Trump Warns of “Substantial” Chip Tariffs, Signals Exemption for Apple

President Donald Trump has once again signaled a potential shift in U.S. trade policy, reiterating his intention to impose tariffs on semiconductor imports from companies that fail to establish or expand manufacturing operations within the United States. Addressing a group of tech leaders at a White House dinner on Thursday, the President suggested that those companies investing in domestic production, such as Apple, could be spared from these levies.

The exclusive dinner, attended by prominent figures including Apple CEO Tim Cook, Meta’s Mark Zuckerberg, and Oracle CEO Safra Catz, served as a backdrop for Trump’s remarks. “I’ve discussed it with the people here, chips and semiconductors, and we’ll be putting tariffs on companies that aren’t coming in,” Trump stated, emphasizing the administration’s commitment to bolstering America’s domestic semiconductor industry. “We’ll be putting a tariff very shortly…a fairly substantial tariff.”

This announcement follows Trump’s previous statement regarding a potential 100% tariff on semiconductor imports, with exemptions for companies that relocate their manufacturing facilities to the U.S. Apple’s prior commitment to invest an additional $100 billion in domestic manufacturing initiatives, building upon a $500 billion pledge made earlier this year, appears to have positioned them favorably in this context. During Thursday’s engagement, Trump specifically noted that “Tim Cook would be in pretty good shape,” with respect to the prospective import duties.

The push to onshore the semiconductor supply chain is not new. The United States has been actively pursuing this goal for several years, motivated by national security concerns and the desire to reduce reliance on foreign sources. Since 2020, industry giants like TSMC and Samsung Electronics have pledged to invest billions in constructing advanced manufacturing plants within the U.S. This influx of capital is largely driven by government incentives, including funding from the CHIPS Act, which aims to encourage domestic semiconductor production through grants, tax credits, and other forms of support.

While the implications for companies investing in U.S. operations seem clear, several aspects regarding the tariffs themselves and the scope of potential exemptions remain ambiguous. Trump offered limited clarification on Thursday, stating that “if they’re coming in, building, planning to come in, there will not be a tariff.” This raises questions about the criteria used to determine whether a company’s investment plans are sufficient to qualify for exemption. Furthermore, the magnitude of the tariffs remains subject to speculation.

Beyond the trade discussions, the dinner also fostered a collaborative atmosphere, with tech CEOs from organizations such OpenAI and Google expressing support for the President’s pro-business policies and his emphasis on artificial intelligence. The White House has been actively engaging with industry leaders to address the challenges and opportunities presented by AI, with a focus on responsible development and deployment.

While Tesla CEO Elon Musk was absent from the event, having reportedly sent a representative in his stead due to a scheduling conflict, the gathering underscores the increasingly important role of the technology sector in shaping economic policy. The discussions surrounding tariffs and domestic manufacturing highlight the complex interplay between innovation, trade, and national security in today’s global landscape.

Earlier in the day, First Lady Melania Trump addressed the second meeting of the White House Task Force on Artificial Intelligence Education, emphasizing the importance of AI in education. She also noted it was critical that “we must manage AI’s growth responsibly.”