US President Donald Trump is preparing to impose fresh tariffs on semiconductors, with an announcement expected within the next week. The move marks a reversal from temporary relief granted to key electronics items, and reflects his push to tackle what he calls unfair trade practices — especially by China.
Trump confirmed that semiconductor tariffs would come in the “not distant future,” adding that there would be “some flexibility” for select companies. While the president gave no specifics, he said a separate announcement on products like iPhones would follow soon.
Posting on his social media platform Truth Social, Trump wrote: “NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”
Temporary relief for tech firms
Just days earlier, the Trump administration had issued tariff exemptions for smartphones, laptops, memory chips, hard drives, and semiconductor manufacturing equipment. These products were excluded from the 125% reciprocal tariffs on Chinese imports, as well as the 10% baseline global tariff.
The temporary relief was designed to shield US consumers from inflation and prevent further disruption to supply chains. Major tech firms like Apple, Nvidia, and Samsung benefited from the pause, given their deep dependence on Chinese suppliers. Chipmakers such as Taiwan Semiconductor also gained from exemptions on specialised equipment.
However, the White House has clarified that these exclusions are short-lived. Trump reaffirmed that no country, particularly China, would be spared from upcoming duties. A national security-focused trade investigation into chips and semiconductors is already underway.
Push to reduce reliance on China
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” White House Press Secretary Karoline Leavitt said in a statement, as reported by CNN.
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
But for firms like Apple, shifting manufacturing out of China remains a long-term effort. Despite efforts to diversify, around 90% of iPhones are still assembled in China.
India has emerged as a key alternative. Since March, Apple has flown more than 600 tonnes of iPhones from its Indian factories, anticipating tariff disruptions.
Also Read: China gains on electronics, but India still wins
According to India’s Minister for electronics and information technology, Ashwini Vaishnaw, Apple exported iPhones worth over Rs 1.5 trillion from India in the financial year ended March 2025.
Higher prices
Analysts from AP warn that fresh tariffs could significantly raise prices for US consumers. The iPhone 16 Pro Max, for instance, could see a price hike of up to 29%, pushing the base model from $1,200 to $1,550. Fully moving production to the US could push retail prices above $3,000 — a level experts say is unsustainable.
China’s counterbalance
While China was excluded from the most recent tariff exemptions, it is taking a different route. President Xi Jinping is expected to visit Southeast Asia soon to strengthen regional trade ties, positioning Beijing as a counterweight to Washington’s increasingly aggressive trade stance.
Trump confirmed that semiconductor tariffs would come in the “not distant future,” adding that there would be “some flexibility” for select companies. While the president gave no specifics, he said a separate announcement on products like iPhones would follow soon.
Posting on his social media platform Truth Social, Trump wrote: “NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!”
Temporary relief for tech firms
Just days earlier, the Trump administration had issued tariff exemptions for smartphones, laptops, memory chips, hard drives, and semiconductor manufacturing equipment. These products were excluded from the 125% reciprocal tariffs on Chinese imports, as well as the 10% baseline global tariff.
The temporary relief was designed to shield US consumers from inflation and prevent further disruption to supply chains. Major tech firms like Apple, Nvidia, and Samsung benefited from the pause, given their deep dependence on Chinese suppliers. Chipmakers such as Taiwan Semiconductor also gained from exemptions on specialised equipment.
However, the White House has clarified that these exclusions are short-lived. Trump reaffirmed that no country, particularly China, would be spared from upcoming duties. A national security-focused trade investigation into chips and semiconductors is already underway.
Push to reduce reliance on China
“President Trump has made it clear America cannot rely on China to manufacture critical technologies such as semiconductors, chips, smartphones, and laptops,” White House Press Secretary Karoline Leavitt said in a statement, as reported by CNN.
“At the direction of the president, these companies are hustling to onshore their manufacturing in the United States as soon as possible.”
But for firms like Apple, shifting manufacturing out of China remains a long-term effort. Despite efforts to diversify, around 90% of iPhones are still assembled in China.
India has emerged as a key alternative. Since March, Apple has flown more than 600 tonnes of iPhones from its Indian factories, anticipating tariff disruptions.
Also Read: China gains on electronics, but India still wins
According to India’s Minister for electronics and information technology, Ashwini Vaishnaw, Apple exported iPhones worth over Rs 1.5 trillion from India in the financial year ended March 2025.
Higher prices
Analysts from AP warn that fresh tariffs could significantly raise prices for US consumers. The iPhone 16 Pro Max, for instance, could see a price hike of up to 29%, pushing the base model from $1,200 to $1,550. Fully moving production to the US could push retail prices above $3,000 — a level experts say is unsustainable.
China’s counterbalance
While China was excluded from the most recent tariff exemptions, it is taking a different route. President Xi Jinping is expected to visit Southeast Asia soon to strengthen regional trade ties, positioning Beijing as a counterweight to Washington’s increasingly aggressive trade stance.
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