Donald Trump says semiconductor imports will face a tariff of about 100%, unless companies build in the US

United States president Donald Trump has said a tariff of about 100% will be imposed on semiconductor ships imported from countries not producing in America or planning to do so, reports Reuters.

On Wednesday (August 6, 2025), Trump told reporters in the Oval Office that the new tariff would apply to “all chips and semiconductors coming into the US.” This would not apply to companies that have committed to manufacture such components in the US or were in the process of doing so.

“If, for some reason, you say you’re building (a local production site) and you don’t build, then we go back and we add it up. It accumulates, and we charge you at a later date. You have to pay, and that’s a guarantee,” Trump said. His comments were not a formal tariff announcement, as the White House has yet to issue a presidential action or fact sheet for reference.

The US president also did not provide further specifics on how many chips or which countries would be impacted by the new levy. Malaysia is a global player in the supply of automotive components, particularly semiconductors which were previously said to be exempt from US tariffs.

The US recently reduced its reciprocal tariff on Malaysian exports from 25% to 19%, effective August 1, 2025. Soon after this was revealed, minister of investment, trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia’s pharmaceutical products and semiconductors were already exempt from US tariffs and remained so after the new tariff rate of 19% was announced, Reuters reported.

However, with Trump’s latest statement that states “all chips and semiconductors coming into the US” would face a 100% tariff, it remains to be seen if the situation has changed. Other chip-making countries such as South Korea and Japan, as well as those in the European Union (EU), have agreed to trade deals with the US, which could give them an advantage.

For instance, the EU has agreed to a 15% tariff rate for the vast majority of its exports, including cars, chips and pharmaceuticals. Meanwhile, South Korea and Japan said separately that the US had agreed not to give them worse tariff rates than other countries on chips, suggesting a 15% levy as well. It’s possible Malaysia’s trade deal with the US that brought about the reduced tariff rate of 19% will continue to see its chip exports be tariff-free.

Looking to sell your car? Sell it with Carro.