Apple Expands U.S. Investment as Trump Announces 100% Semiconductor Tariff
President Donald Trump has announced a 100% tariff on semiconductor imports, exempting firms that commit to U.S.-based manufacturing.
U.S. President Donald Trump has unveiled a sweeping plan to impose a 100% tariff on all imported semiconductors, a move aimed at reshaping global tech supply chains and boosting domestic production. The announcement came as Apple CEO Tim Cook committed an additional $100 billion to U.S. manufacturing, expanding Apple’s total investment to $600 billion. Trump said companies that manufacture or commit to manufacture in the U.S. will be exempt from the new tariffs.
Tariff Shock and Exemptions
Speaking from the Oval Office on August 6, Trump declared the new tariffs as part of a national security effort under Section 232 of the Trade Expansion Act of 1962. However, he emphasized that companies like Apple, which have invested in U.S. production, would be shielded from the levy.
“If you’re building in the United States, or have committed to build … there will be no charge,” Trump said.
The exemptions are also expected to cover chipmakers like TSMC and Samsung, both of which have established operations in Arizona and Texas respectively. South Korea’s trade minister confirmed that Samsung and SK Hynix would avoid the tariffs due to ongoing U.S. investment commitments.
Apple’s Expanding American Footprint
Apple’s new $100 billion investment — part of the American Manufacturing Program — will be executed over four years and involve major suppliers including Corning, GlobalFoundries, and Amkor Technology. The company plans to source 19 billion chips from facilities across 12 U.S. states, and manufacture advanced iPhone and Apple Watch cover glass in Corning’s Kentucky plant.
Tim Cook confirmed that Samsung’s Austin plant will supply chips for Apple using a “never before seen” technology. He added that while component manufacturing is moving stateside, final iPhone assembly would remain abroad “for a while” due to existing supply chain infrastructure.
Markets React and Industry Aligns
Trump’s announcement sent shockwaves through global markets but was tempered by the broad exemptions. U.S. futures rebounded while Asian tech stocks showed mixed reactions. Investment strategist Billy Leung noted that “Apple’s $100 billion US manufacturing commitment and relief that Trump’s 100% chip tariff is unlikely to disrupt major supply chains” helped stabilize sentiment.
Since Trump's return to office, major global firms have pledged over $1 trillion in U.S.-based investments. Nvidia, AMD, and Apple have all engaged with the White House, aligning themselves with Trump’s reshoring initiative.
Impact on Global Trade and Technology
Despite the exemptions, Trump reiterated his broader protectionist stance by also announcing a 50% tariff on Indian goods, penalizing New Delhi for its Russian energy purchases — a move that may affect Apple’s supply lines in India.
Trump warned that future tariffs may also target a wide range of electronics using chips — from smartphones to vehicles — indicating a more expansive trade overhaul in the weeks ahead.
“Apple’s coming back to America,” Trump said, praising Tim Cook’s investment as unprecedented in scale. However, analysts caution that meaningful reshoring of high-end chip production remains constrained by U.S. capacity limitations, especially in advanced node manufacturing dominated by East Asian fabs.