Trump to slap 100% tariff on chip imports, exempts Apple and select firms: Full story in 5 points
Apple has committed to spending another $100 billion on US manufacturing, adding to its earlier $500 billion pledge. The new investment includes a fresh manufacturing programme in partnership with companies like Corning, Applied Materials, and Texas Instruments.Corning, for instance, will dedicate an entire factory in Kentucky for Apple's glass production, increasing its workforce in the state by 50 per cent. This push is designed to shift more of Apple's production base to the US, although major assembly, including iPhones, still happens abroad.Trump praised the move, saying: "Apple's coming back to America."Other tech giants scramble to secure exemptionsApple isn't the only company to benefit. Taiwan Semiconductor Manufacturing Co (TSMC), Samsung, and SK Hynix have all pledged US investments and are reportedly exempt from the new tariff.TSMC is building new plants in Arizona, and Samsung runs a facility in Austin, Texas, which will supply chips to Apple. South Korea's trade minister confirmed Samsung and SK Hynix chips would not face the 100 per cent tariff, helping soothe fears in Asian tech markets.Nvidia and AMD, while part of global supply chains, have also signalled stronger commitments to sourcing chips from within the US.A looming threat: Tariffs on electronics using chipsBeyond semiconductors, Trump warned of additional tariffs on all electronics that use chips, from smartphones and laptops to cars and household appliances. Those levies could be unveiled as early as next week.This raises serious concerns for firms reliant on global supply chains. Most iPhones sold in the US, for example, are assembled in India, a country Trump has targeted with separate 50 per cent tariffs. Vietnam, another Apple production hub, has already been hit with a 20 per cent levy.Big promises, uncertain futureDespite the large numbers and public pledges, much of the capital announced so far was previously committed. It remains to be seen whether the promised localisation can happen quickly enough, or fully, to avoid the looming tariffs.Tim Cook has told Trump that full iPhone production won't shift to the US 'for a while,' though key parts are now made domestically. Trump, however, appears content with Apple's current direction, calling the investment 'unmatched anywhere in the world.'With more tariff announcements expected, the global tech industry is watching closely, and weighing whether US investment is now a cost of doing business.- EndsTune InMust Watch
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