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Breaking News! Trump Announces Approximately 100% Tariffs on These Products, Apple Invests $100 Billion in Emergency Risk Mitigation!

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On August 6, local time, US President Trump publicly stated that, The United States will impose approximately 100% high tariffs on imported chips and semiconductors. However, Trump also emphasized that, No such fees will be charged if the relevant products are manufactured domestically in the United States.

  That day, Trump, during a press interview at the White House, resolutely and clearly stated that this high 100% tariff will apply to "all chips and semiconductors entering the United States." However, he promised that companies that have committed to or initiated procedures for manufacturing related products in the United States can obtain exemptions.

This policy signal is very clear. The United States is attempting to use tariffs to forcefully guide the global chip and semiconductor industry to cluster domestically.

  It is worth mentioning that on the same day that Trump announced this tariff policy, Trump and Apple CEO Tim Cook appeared at the White House, and jointly announced that Apple plans to invest an additional US$100 billion in the United States.

Local media have analyzed that this is very likely a compromise Apple had to make to avoid high tariffs, promising to move some of its supply chain back to the United States.

  In fact, the US government's efforts to bring the chip manufacturing industry back to the country have been evident for some time. Previously, the Biden administration launched the "Chips and Science Act" , providing huge subsidies and a series of preferential policies to attract global chip companies to invest in and build factories in the United States.

  However, judging from the implementation, although some companies have responded, the overall progress has been slow, and the effect has not met expectations. Trump's announcement of such high tariffs this time, is undoubtedly seen as a more aggressive and powerful means of market intervention, hoping to break the current deadlock in the chip industry layout.

  Many analysts point out that, Taiwan's chip industry will be the first to bear the brunt, directly suffering the impact of this tariff policy. The vast majority of advanced chips in the world are produced in Taiwan. Industry giants such as Apple, Nvidia, and Qualcomm all heavily rely on TSMC's supply.

From a broader perspective, the rise and fall of the island's chip industry not only concerns the economic level but also has a profound impact on the political landscape. If, due to the impact of tariffs, a large number of chip companies transfer production capacity or lose orders, it is likely to disrupt the existing regional industrial balance, and further affect related political games.

For the global chip industry chain, this measure may trigger major changes. On the one hand, countries and regions that heavily rely on chip exports to the United States, such as South Korea and Taiwan, will see their related companies' profits and market share severely impacted.

On the other hand, this may accelerate the restructuring of the global chip industry chain. Considering the avoidance of high tariffs, companies may very likely re-plan their production capacity layout, and some production capacity will accelerate its transfer to the United States. However, the transfer of the chip industry chain is not easy and cannot be accomplished overnight. Large-scale transfers in the short term face many difficulties.


 

  This chip industry storm, triggered by a 100% tariff, has only just begun. Will the United States achieve a strong rise in "chip localization," or will the global industry chain find a new balance in pain? How will companies that rely on chip imports and exports break the deadlock? Perhaps, the industrial trends in the next few months hold the answer to rewriting the global technological competition landscape.

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Keywords:

U.S.-China relations,US-China tariffs