During today’s Oval Office press conference, President Donald Trump announced that Apple will be exempt from an upcoming “very large tariff on chips and semiconductors”. Here are the details.
Today, Apple announced the American Manufacturing Program (AMP), adding $100 billion to its previously pledged $500 billion investment aimed at expanding domestic facilities and creating jobs.
During the press briefing in which, among other things, Apple CEO Tim Cook gifted President Trump a piece of US-made round glass and a 24k gold base, Trump announced that he will soon place a tariff of “approximately 100%” on chips and semiconductors.
Although characteristically light on specifics, the new levy isn’t exactly a surprise. Trump first hinted at a chip tariff back in mid-April, when he said he’d announce a specific rate on imported semiconductors “over the next week.”
Here’s Trump’s full statement from today’s press conference:
“We’re going to be putting a very large tariff on chips and semiconductors. But the good news for companies like Apple is if you’re building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge. In other words, we’re not going to be charging. So a lot of countries, a lot of companies are leaving various other places and they’re coming to the United States. So in other words, 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. Even though you’re building, and you’re not producing yet in terms of the big numbers of jobs and all of the things that you’re building, if you’re building, there will be no charge. So I just want everyone to know that and I didn’t even tell you that inside. We discussed the concept but I didn’t. So it’s a big factor. So 100% tariff on all chips and semiconductors coming into the United States. But if you’ve made a commitment to build or if you’re in the process of building as many are, there is no tariff, okay?”
President Trump also said that there will be retroactive tariffs for companies that commit to domestic spending, but don’t deliver.
You can watch the press conference below:
Apple, for its part, has announced new initiatives across key states, from a $2.5B Corning expansion in Kentucky, to chip and infrastructure projects in Arizona, Texas, and beyond. You can read more about it here.
What’s your reading on today’s announcements? Let us know in the comments.
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