Trump Declares 100% Tariff on Chips Made Outside USA to Boost US Jobs

Trump Declares 100% Tariff on Chips Made Outside USA to Boost US Jobs

In August 2025, former President Donald Trump said something big. He said that all computer chips made outside the United States will now have 100% import tax. This means companies must pay double money to bring chips from other countries into the USA.

Let’s understand this news in very simple words.


đŸŸĻ What Is a Chip?

A computer chip is a tiny part inside your computer, phone, or tablet. It helps the device to work fast and smart. Every phone, laptop, smart TV, and even cars use chips.

Most of these chips are made in other countries like China, Taiwan, and South Korea.


đŸŸĻ What Did Trump Say?

Trump said:
👉 “From now on, if you bring chips into the USA from other countries, you must pay 100% tax.”

But…
👉 If companies make chips inside the USA, they don’t need to pay this tax. They can bring the chips for free.


đŸŸĻ Why Did Trump Do This?

Trump wants to make more jobs in the USA. He thinks if companies build chip factories in the USA, then more American people will get work.

Also, the USA will not need to buy so many chips from other countries.

Trump said:

"Make chips in America. Make jobs in America."


đŸŸĻ What Will Happen Now?

Now companies have two choices:

  1. Pay the big 100% tax to bring chips from outside.

  2. Build chip factories inside the USA and save money.

Many companies will choose to make chips in the USA to save money.


đŸŸĻ What Did Apple Do?

Apple is a big tech company. They make iPhones, iPads, and Macs. Most Apple chips are made in other countries.

But after Trump’s news, Apple said:

"We will invest $100 billion more in the USA."

This means Apple will build more factories and make more things inside the USA.

Because of this promise, Apple does not need to pay the 100% chip tax. Trump said Apple is doing the right thing.

👉 Read about Apple’s $100 Billion Pledge


đŸŸĻ Why Is This Important for the USA?

  • The USA can make its own chips.

  • More jobs for American workers.

  • Less need to buy from other countries.

  • Stronger technology industry in America.


đŸŸĻ Will Other Companies Do the Same?

Yes! Other big companies like Intel, AMD, and even Samsung may want to build in the USA too. Nobody wants to pay 100% tax!


đŸŸĻ What Is 100% Tax?

Let’s say a company buys chips from another country for $1 million.

If they pay 100% tax, they must now pay $2 million total.

That is a lot of extra money! This is why companies want to build inside the USA instead.


đŸŸĻ What Will Happen to Prices?

Some people think computer and phone prices might go up because:

  • Companies will pay more tax

  • Or they will build new expensive factories

But if companies build in the USA and get tax benefits, prices may stay the same or even go down in the future.


đŸŸĻ What Are People Saying?

  • Some people love the idea. They want more jobs in the USA.

  • Some people are worried that prices will go up.

  • Others say building new factories takes a long time.

But most tech experts say:

"This could make the USA a chip superpower again."


đŸŸĻ Final Words: Big Move from Trump

This new chip tariff is one of the biggest tech news of 2025. It shows that the USA wants to lead the tech world again.

If companies like Apple, Intel, and Samsung start making chips in the USA, it will be a big win for American workers.


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