President Donald Trump announced a dramatic policy shift on semiconductor imports, declaring that a 100% tariff will be imposed on all foreign-made chips unless manufacturers establish production facilities in the United States.

This announcement came during a press event with Apple CEO Tim Cook, where Apple also revealed a significant $100 billion investment to expand its U.S.-based manufacturing operations. According to Trump, the hefty new tariff will apply to all imported semiconductors and chips, but companies that either manufacture or have initiated manufacturing plants in the U.S. will be exempt from the charge—even if those facilities are not operational yet.

This policy is poised to significantly impact the global semiconductor market, as chips are crucial components in everything from smartphones and computers to cars, medical devices, and AI systems. Trump emphasized that the aim is to incentivize semiconductor companies to bring their manufacturing back to American soil, stating his belief that “chip companies are all coming back home” because of the new guidelines.

Several leading chip manufacturers have already announced intentions to build or expand production in the U.S., largely in response to growing concerns about supply chain resilience and the desire for greater American technological independence. The industry was already moving toward domestic manufacturing, but the prospect of a 100% import tariff on foreign-made chips dramatically raises the stakes.

This move aligns with the administration’s broader trade and industry strategy, which includes increasing tariffs on certain imports and offering reciprocal tariff structures in response to global economic competition. As this policy develops, its ripple effects will be closely watched by manufacturers, tech companies, and global trade partners.