Donald Trump will impose 100% tax on computer chips, will electronic products become expensive?

US President Donald Trump has announced a 50 percent tariff on India, and the matter does not end here. Trump has also announced that the US will impose almost a 100 percent tariff on semiconductor chips. This one decision of Trump can increase the prices of electronics, home appliances, automobiles, and digital products.

Trump told reporters in the Oval Office that the new tariff rate will apply to all chips and semiconductors coming to the US, but will not apply to those companies that have committed to manufacturing in the US or are in the process of doing so. Trump said, if for some reason you say you are manufacturing and you do not manufacture, then we will add the tariff, it will keep adding, and we will charge you later, and you will have to pay.

These companies will not be affected.
Donald Trump's comment was not a formal tariff announcement and Trump has not given any more detailed information about this, due to which it is not clear how many chips or which countries will be affected by the new duty. Taiwanese chip contract manufacturer TSMC, which makes chips for most US companies, has factories in the US so its big customers like Nvidia are unlikely to face tariff cost hikes.

The AI chip giant said it plans to invest hundreds of billions of dollars in US-made chips and electronics over the next four years. But an Nvidia spokesperson declined to comment on the news for now. Brian Jacobson, chief economist at investment advisory firm Annex Wealth Management, said large, cash-rich companies that can afford to manufacture in the US will benefit the most, the Economic Times reported.

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