- Trump plans tariffs on chips and steel, starting low, then rising sharply.
- Semiconductor tariffs could reach 200-300%, with exemptions for US manufacturers.
- Trade talks with Putin may hinge on resolving ongoing geopolitical conflicts.
US President Donald Trump announced plans for new tariffs on semiconductor chips and steel, potentially escalating global trade tensions. Speaking to reporters aboard Air Force One on Friday, en route to Alaska for a meeting with Russian President Vladimir Putin, Trump outlined his strategy.
“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips,” he said, indicating that rates would start low to encourage companies to shift manufacturing to the US before increasing sharply, mirroring his approach to pharmaceuticals.
This follows earlier tariff hikes on steel and aluminium, raised to 25% in February and doubled to 50% in May to bolster domestic manufacturers. It remains unclear if Trump’s latest remarks signal further increases for these metals. On semiconductors, Trump previously announced a 100% tariff last week, with exemptions for companies investing in US production.
Also Read: Thailand Approves 770M Plan to Accelerate AI Adoption
The White House has yet to clarify exemption details, though Trump suggested Apple, which committed $600 billion to domestic manufacturing, could benefit.
The US Commerce Department in April started investigating semiconductors and pharmaceuticals, a requirement for declaring tariffs in the name national security which can take months. Manufacturers and AI companies want clarity, because chips are such an important part of consumer goods.
Trump also indicated trade discussions with Putin, noting, “I noticed he’s bringing a lot of business people from Russia, and that’s good I like that because they want to do business.” However, he added, “But they’re not doing business until we get the war settled.” Recently, Trump threatened 50% tariffs on Russian energy buyers, including India, and warned of higher economic costs if talks with Putin falter.
The proposed tariffs could disrupt global supply chains, prompting companies to reassess manufacturing strategies amid rising trade barriers.