President Trump announced plans on Wednesday to impose a 100% tariff on imported semiconductors. This announcement came during an event in the Oval Office with Apple CEO Tim Cook, who was there to discuss a new $100 billion investment in U.S. manufacturing.

The proposed tariff would apply to all chips and semiconductors made outside the United States. However, companies that commit to manufacturing microchips domestically would be exempt from these tariffs. "We’ll be putting a tariff on of approximately 100% on chips and semiconductors, but if you're building in the United States of America, there's no charge," Trump stated.

Trump emphasized that the tariff is intended to encourage companies to establish manufacturing operations in the U.S. He mentioned that companies like Taiwan Semiconductor Manufacturing Company (TSMC), which is building facilities in Arizona, would likely be spared from the tariff if they follow through on their commitments.

“If you’re building in the United States of America, there’s no charge, even though you’re building and you’re not producing yet,” Trump added. He also warned that if companies fail to fulfill their commitments to build in the U.S., they would face penalties later.

“I think the chip companies are all coming back home. They’re all coming back,” Trump said, referring to a trend of semiconductor manufacturers returning to the U.S. He noted that Intel, in particular, had moved operations overseas but is now expected to return.

In addition to the semiconductor tariffs, Trump has previously implemented various tariffs on foreign steel, aluminum, and cars, aiming to bolster American industries. The president did not provide a specific start date for the new semiconductor tariffs, but he has indicated that similar duties may be applied to pharmaceuticals and lumber in the future.