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Trump Says That Chip Tariffs Are Starting "Very Soon"
How high will the tariffs be?
Earlier this year, Trump threatened to impose 25%, 50%, or 100% tariffs on semiconductors produced in Taiwan but remained quiet after TSMC committed to investing an additional $100 billion in its production capacity and an R&D center in the U.S. However, after the sweeping tariffs imposed on goods from Europe, Japan, South Korea, and Taiwan made chipmaking tools 20%—32% more expensive for American chip producers and, therefore, increased their costs, it is logical for the U.S. government to impose tariffs on foreign semiconductors to somewhat level their competitive advantages over domestic chips in the American market. Sweeping tariffs on all chips produced outside of the U.S. will hurt the best and most profitable American chipmakers, such as AMD, Broadcom, Intel, Nvidia, and Qualcomm, which make the lion's share of their products at TSMC in Taiwan.
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