Trump Eyes 100% Chips Tariff, Exempting Firms That Invest in US

Donald Trump declared plans for a 100% tariff on semiconductor imports while promising to exempt companies such as Apple Inc. that move production back to the US, triggering a scramble among trading partners and companies worldwide to make sense of the threat.

The US president announced his intentions from the Oval Office flanked by Apple Chief Executive Officer Tim Cook, who unveiled plans to invest another $100 billion into domestic manufacturing. Any company that demonstrates a similar commitment would be exempt from tariffs on chips — though the White House will levy a separate tax on imports of electronics products from smartphones to cars that employ semiconductors.