TL;DR: President Donald Trump has reiterated his threat to impose tariffs on foreign-made semiconductor chips, pharmaceuticals, steel, aluminum, and copper "in the near future." Speaking to House Republicans, Trump argued that imposing high tariffs on goods produced outside the United States would incentivize manufacturers to bring production back to the country. "The only way you'll get out of this is to build your plant ... right here in America," he stated.
Trump's speech did not provide additional details about his proposed tariffs. However, speaking to reporters afterward, he stated his intention to implement a "much bigger" tariff rate than the current 2.5 percent. According to Trump, companies need an "incentive" to bring manufacturing back to the US, "and the incentive is going to be they (do not want to) pay a 25 percent, 50 percent, or even a 100 percent tax."
Trump also criticized leading US tech companies – including Apple, AMD, Broadcom, Nvidia, and Qualcomm – for relying on Taiwan's TSMC for chip imports. He expressed confidence that imposing high tariffs would compel these companies to invest in domestic semiconductor manufacturing. Additionally, he described the CHIPS Act as wasteful, arguing that companies should not receive public funding to build their factories.
As some observers have pointed out, building semiconductor fabs is a long-term commitment, often requiring several years and tens of billions of dollars. Experts suggest that even if TSMC began construction of a sub-2nm-capable fab in the US this year, it would likely only become operational by 2028 – 2029. In the meantime, the proposed high tariffs could significantly increase the cost of PCs, smartphones, and other consumer electronics.
Supporters of the tariff regime argue that it would reduce reliance on foreign manufacturing, prioritize domestic production, and create thousands of jobs for both skilled and unskilled workers.
In an unexpected comment, Trump praised China's advancements in the AI field, referring to recent news about DeepSeek as a "positive" development and an "asset" for the global tech sector. He noted that if DeepSeek delivers on its promise of accelerating AI training at a lower cost, "that's good (and) I view that as a positive." Trump further stated that China's progress in AI should serve as a "wake-up call" for American tech companies.
Trump's remarks follow his recent threat to impose 25 percent tariffs on goods imported from Canada and Mexico. While he maintains that high tariffs on foreign-made products are in America's best interest, many economists have raised concerns about the potential long-term harm such policies could inflict on the US economy.