Trump’s New Tariff Plan

President Donald Trump announced on Tuesday that he will introduce new tariffs on semiconductors within the next week, aiming to bolster domestic chip production and reduce dependence on foreign suppliers. Speaking on a US television programme, Trump highlighted that these tariffs will treat semiconductors and chips as a distinct category, reinforcing his commitment to keeping manufacturing within the United States. This follows an executive order that imposed new duties on imports from several countries, with Taiwanese goods now facing a 20% tariff, down from the 32% initially proposed in April.

The tariff plan comes as Taiwan Semiconductor Manufacturing Co. (TSM) continues to lead global production of advanced chips, serving major clients such as Apple, Nvidia, Qualcomm, and Advanced Micro Devices. These companies rely heavily on TSM’s cutting-edge manufacturing capabilities, and the new tariffs could disrupt supply chains and increase costs. Trump’s focus on semiconductors reflects a broader strategy to reshape global trade dynamics and prioritise American industry, potentially affecting the pricing and availability of electronics worldwide.

Beyond semiconductors, Trump hinted at further tariff increases in other sectors, with pharmaceuticals potentially facing duties as high as 250%. His administration’s trade policies are increasingly using tariffs to influence supply chains and enhance US production capacity. These moves signal a continuation of Trump’s protectionist agenda, aiming to strengthen the domestic economy while navigating complex global trade relationships.