“President Trump said he would impose roughly 100% tariffs on all chips coming into the U.S. but exempt tech companies that have promised to manufacture domestically, a big win for Apple and other electronics firms worried about new trade challenges.
Trump's announcement on Wednesday came at an event trumpeting a new $100 billion investment pledge from Apple. The company has increased its commitments in the U.S. but stopped short of moving iPhone production to the U.S. as Trump wants.
The new exemptions are a win for Apple Chief Executive Tim Cook, who has warned about the impact from tariffs on China and India. His company has so far avoided the most punishing levies. Cook also won tariff exemptions in the first Trump administration.
Many industry executives had been bracing for tariffs on all chip-related products that would snarl supply chains for everything from cars to appliances.
The president's comment that tech companies can avoid new chip tariffs by promising to invest in the U.S. formalizes an arrangement many executives already understood. Nearly every major tech firm has promised to put more into their U.S. operations, resulting in over $2 trillion in new pledges in the past seven months.
"If you're building, there will be no charge," Trump said.
Industry analysts and executives say it is financially infeasible to make iPhones domestically, so Apple has moved some production to India from China and promised to make components in the U.S. The company's $100 billion promise announced Wednesday adds to a $500 billion, four-year commitment Apple made in February that repackaged much of Apple's existing spending plans in the U.S., according to analysts.
Cook presented the president with a glass plaque with a gold base specially designed for Trump, which he said was made entirely in the U.S. Cook unboxed it and set it up on the Resolute Desk in the Oval Office. He said all of the glass that Apple uses for iPhones and Apple Watches will soon be made in Kentucky by materials company Corning as part of a $2.5 billion investment. Some of the glass was previously made there.
Earlier Wednesday, Trump also met with Jensen Huang, chief executive of chip designer Nvidia, at the White House, people familiar with the matter said. Huang has become one of Trump's favorite business executives, and his company has promised to invest $500 billion in the U.S. while lobbying for friendly chip export policies.
In May, Trump praised Huang for joining him on a trip to the Middle East and pointed out that Cook wasn't in attendance. He also criticized Apple for making iPhones in India. But on Wednesday, Trump introduced Cook as "one of the great and most esteemed business leaders, geniuses and innovators anywhere in the world."
"This is a significant step toward the ultimate goal of ensuring that iPhones sold in the United States of America are also made in America," Trump said of Apple's investment pledge.
Apple shares rose 5.1% on Wednesday and gained more after hours on news of the exemption from the new chip tariffs. Shares of chip companies like Taiwan Semiconductor Manufacturing also rose in after-hours trading.
Cook said that American manufacturers are on track to make 19 billion chips for Apple in 24 factories in 12 different states. "We're going to keep hiring in America and we're going to keep building technologies at the heart of our products right here in America," Cook said in the Oval Office.
The company said it was launching a new manufacturing program aimed at onshoring more of its supply chain. Apple also promised to work with semiconductor companies including Broadcom, Samsung and Applied Materials to onshore more of that supply chain, which has long been a priority for policymakers.
Apple has made similar announcements dating back to the first Trump administration. Its investment in American manufacturing still pales next to investments the company is making in its supply chains in China, India and elsewhere in Southeast Asia, where nearly all of its devices are made.
"The market seems to believe that we're in a pay-to-play world where companies can buy their way into tariff exemptions by making commitments to invest in the U.S., even if those investments fall far short of actually re-shoring manufacturing," said Craig Moffett, an analyst at Moffett Nathanson.
Skeptics say splashy announcements such as Apple's often repackage existing plans or don't always come to fruition in terms of creating the promised jobs.
Trump announced an additional 25% tariff on India on Wednesday for buying Russian oil. That would raise the total U.S. tariffs on exports from New Delhi to 50%. It was a reminder of the trade threat Apple faced after moving some of its iPhone assembly lines there from China, where 20% levies are already hitting its bottom line.
The roughly 100% chip tariffs had been expected for months. Earlier in the year, Trump had exempted Apple and other tech companies from so-called reciprocal tariffs with individual countries and said at the time that tech products would be hit by the broader sectoral tariffs.
News Corp, owner of The Wall Street Journal, has a commercial agreement to supply news through Apple services.
Chip makers have increased their lobbying in recent weeks. Trump recently met with Micron Technology. Last month, Nvidia persuaded Trump to ease restrictions on a popular chip it designed for the Chinese market last month. The reversal was seen as a big win for the tech sector.
"Every company has learned a lot about how to navigate their relationship with Trump," said Adam Kovacevich, CEO of the Chamber of Progress, a tech trade group. "Nvidia and Apple are among the companies that have done it the best."” [1]
1. Trump Sets 100% Chip Tariffs Unless Firms Invest in U.S. Ramkumar, Amrith; Andrews, Natalie; Winkler, Rolfe. Wall Street Journal, Eastern edition; New York, N.Y.. 07 Aug 2025: A1.
Komentarų nėra:
Rašyti komentarą