In a wide-ranging interview on CNBC’s Squawk Box, President Trump revealed that a new round of US tariffs on semiconductors and chips will be announced “within the next week or so,” stating that the goal is to boost domestic manufacturing. “We want them made in the United States,” Trump said, pointing to Taiwan’s dominance in advanced chip production.
The move follows Trump’s recent executive order imposing sweeping duties on dozens of countries—including updated 20% tariffs on Taiwanese imports, down from an earlier 32% threat issued on his April 2 “Liberation Day.” Taiwanese semiconductor giant TSMC, a critical supplier to Apple, Nvidia, AMD, and Qualcomm, is expected to be directly affected.
Pharma Tariffs to Surge as Well
In the same interview, Trump revealed a phased plan targeting pharmaceuticals:
“We’ll be putting a small tariff on pharmaceuticals initially, but in a year to a year and a half — it’s going to go to 150%, then to 250%, because we want pharmaceuticals made in our country.”
This bold escalation follows months of tension with the pharmaceutical sector. Trump recently demanded major drugmakers slash prices or face harsh penalties. The pharma tariff initiative is tied to national security under Section 232 of the Trade Expansion Act — a legal framework giving the White House firmer ground than its other country-specific levies, which are facing court challenges.
$700B Semiconductor Industry in the Crosshairs
The US Commerce Department has been investigating the global chip supply chain since April, with an eye on reshoring production. Trump hailed TSMC’s planned expansion in Arizona, claiming the company was “spending $300 billion” to build the world’s largest chip plant. However, TSMC has only confirmed a $165 billion multiyear investment for six fabs, two packaging plants, and a research center.
Tariffs on semiconductors could drastically raise costs for AI-focused companies like Microsoft, Meta, OpenAI, and Amazon, which rely on advanced chips for their data centers. Trump’s push threatens to ripple through the $700 billion global chip industry, already strained by supply chain shifts and geopolitical tension.
Market and Industry Reactions
Trump’s announcements have already begun to stir reactions from Wall Street and Silicon Valley. Pharma stocks like Merck and Eli Lilly fell earlier this week following Trump’s threats, while AI and tech firms are bracing for potential cost spikes and supply disruptions.
Critics argue these tariffs could backfire, increasing consumer prices and disrupting global supply chains. But Trump remains focused on building US self-reliance in critical sectors.
“We’ve been too dependent for too long. Now it’s our turn,” Trump declared.
The formal announcement is expected in the coming week, likely alongside a broader clarification of Trump’s “reciprocal tariffs” plan, which takes effect Thursday. All eyes are now on whether Taiwan, the EU, and big pharma players will respond — or retaliate.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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