President Trump is preparing to impose tariffs, potentially as high as 100%, on computer chips manufactured in Taiwan. He aims to encourage U.S. companies to relocate their production back to the U.S., criticizing the CHIPS and Science Act signed by President Biden, which allocated $52 billion to boost domestic chip manufacturing.
Trump argues that companies like Intel, which received $7.9 billion from the CHIPS Act to expand U.S. factories, needed stronger incentives like tariffs instead of funding. “They left us and went to Taiwan. We want them to come back,” Trump stated, emphasizing the role of steep tariffs as a deterrent to overseas production.
However, this strategy comes with significant risks. The U.S. depends heavily on Taiwanese chipmakers like TSMC, which supply critical components for products such as Nvidia GPUs, AMD processors, and Apple iPhones. With chip factories taking years to build, tariffs on Taiwanese-made chips could lead to immediate price hikes across numerous electronics, straining consumers and businesses. Despite this, Trump is betting the tariff threat will accelerate a shift toward domestic manufacturing.