Trump announces 100% tariff on computer chip
14 days ago
- #consumer impact
- #semiconductors
- #tariffs
- President Donald Trump plans to impose a 100% tariff on imported computer chips, potentially raising prices on a wide range of products.
- The tariff excludes companies building chips in the U.S., but details on implementation and impact remain unclear.
- The U.S. imports $60 billion in semiconductors annually, with lower-end chips mainly sourced from countries like Malaysia.
- Experts warn the tariff could slow U.S. progress in expanding chip production, which is currently focused on higher-end chips.
- Higher chip costs may lead to price increases for laptops, appliances, vehicles, and medical devices.
- Automakers, already facing a 25% auto tariff, may eventually pass higher costs to consumers, impacting car prices and repairs.
- Used car owners could face higher repair costs, potentially affecting insurance premiums.
- The tariff might cause product shortages, similar to but less severe than the COVID-19 chip shortage, as companies may reduce production.