The Trump administration is preparing to unleash unprecedented tariffs on imported semiconductors, with rates potentially climbing as high as 300%. President Donald Trump, speaking aboard Air Force One, hinted that the announcement could come before the end of August, framing the move as part of a broader push to secure America’s technological supply chain.
These proposed tariffs would fall under Section 232, a trade law that allows the U.S. 
government to restrict imports deemed a threat to national security. With chips now considered essential for everything from defense to consumer electronics, Washington appears ready to act decisively.
Trump made his stance clear: “I’m going to have a rate that is going to be 200%, 300%?” Such steep taxes would be devastating for many chipmakers, particularly smaller firms unable to absorb the added costs. Analysts warn that the impact could ripple across the entire tech sector, driving up prices and reshaping supply chains.
However, companies willing to invest heavily in U.S. production may find a lifeline. Giants such as TSMC, Samsung, SK Hynix, Apple, and NVIDIA have already secured exemptions thanks to their commitments to American manufacturing facilities. For others, avoiding the tariffs could require investments worth tens of billions of dollars.
With the Section 232 investigation expected to wrap up by late August, the global semiconductor industry is bracing for major disruption. If enacted, the tariffs could accelerate a historic shift in chip production toward American soil, while simultaneously sparking fierce backlash from trade partners and industry leaders.