Foreign investment companies' chip imports to the US will now face taxation

In a dinner with major technology company CEOs, US President Donald Trump made an announcement that could shake up the global electronics industry. Trump announced that his administration will impose tariffs on semiconductor imports from companies not shifting production to the US, with the tariffs set to begin on February 6, 2024.

The announcement comes as part of Trump's efforts to reshape US trade policy, a move that has caused global economic uncertainty since his return to office in January. The new tariffs are intended to encourage companies to shift production to the US, following recent investments by Apple, Taiwan Semiconductor Manufacturing Co, Samsung Electronics, and SK Hynix in chip manufacturing in the US.

Apple recently committed to investing US$600 billion in the US over the next four years, a move that Trump mentioned as being favourable to the company's CEO, Tim Cook. South Korea's Samsung Electronics and SK Hynix have also announced investments in chip manufacturing in the US, a clear indication of the attractiveness of the US market for tech giants.

Taiwanese chip giant Taiwan Semiconductor Manufacturing Co (台積電) has also joined the bandwagon, announcing investments in chip manufacturing in the US. However, Trump did not specify which companies or countries would be affected by the new tariffs.

The legal pushback against Trump's use of tariffs is ongoing. A lower court has invalidated most of the tariffs that have been central to Trump's economic and trade agenda. Trump's administration is seeking a swift hearing from the US Supreme Court to preserve his tariffs pursued under a 1977 law meant for emergencies.

Trump has used tariffs as a key tool in US foreign policy, using them to exert political pressure and renegotiate trade deals. However, the imposition of tariffs on semiconductor imports could have far-reaching implications, potentially disrupting global supply chains and increasing the cost of electronics for consumers.

The photo accompanying this article was taken by Bloomberg.

Trump stated that there will be a "substantial tariff" on semiconductor imports, but did not specify an exact time or rate. The announcement has sparked a flurry of reactions, with industry experts and politicians weighing in on the potential impact of the tariffs. As the situation unfolds, it is clear that the electronics industry will be closely watching developments in the US.