Trump plans to impose a 100% tariff on chip products, with companies like Apple and TSMC that build factories in the U.S. eligible for exemptions. Apple and TSMC rose after hours

On Wednesday after the U.S. stock market closed, President Trump announced that a 100% tariff would be imposed on all imported products containing semiconductors, but companies that have already moved or clearly committed to moving production to the U.S. would be exempt.

Trump made the announcement alongside Apple CEO Tim Cook in the Oval Office. Apple announced a new investment of $100 billion in the U.S. Trump stated:

“We will impose very high tariffs on chips and semiconductor products, but companies like Apple, if you build factories in the U.S., or have clearly committed to building in the U.S., will not be taxed.”

“In other words, we will impose about a 100% tariff on chips and semiconductor products. But as long as you build factories in the U.S., you will not be taxed. Even if you haven't started large-scale production yet, as long as you are in the construction phase, you will not be taxed.”

Media reports indicate that this announcement is a significant victory for Apple and its CEO Cook. Previously, the Trump administration had been pressuring Apple with threats of high tariffs, which could significantly increase production costs for Apple's flagship products—iPhone and Mac. The new $100 billion investment plan announced by Apple will initiate a new manufacturing project aimed at relocating more parts of the production chain back to the U.S.

Before the official announcement, on Wednesday morning U.S. time, media reported that under tariff pressure, Apple would invest another $100 billion in U.S. manufacturing, bringing its total investment in the U.S. to $600 billion.

The initial media report of Apple's commitment to invest an additional $100 billion in the U.S. boosted Apple's stock price, which rose 5.1% on Wednesday, closing at $213.28. After the tariff news broke post-market on Wednesday, Apple continued to rise, at one point increasing nearly 3%.

Additionally, TSMC's ADR initially fell and then rose in after-hours trading, increasing nearly 2.9%, STMicroelectronics fell 3%, ASML's ADR dropped over 0.16%, NVIDIA rose 0.02%, Qualcomm fell 0.6%, and GlobalFoundries rose 1.6%.

Returning to U.S. Manufacturing Expected to Increase Operating Costs

Apple announced an additional $100 billion investment in the U.S., which will be used to manufacture glass covers for iPhones and watches entirely in the U.S. Trump stated that Apple would build the world's largest smart glass production line in the U.S.

Apple indicated that its U.S. manufacturing plans would include collaborations with Corning Inc., Applied Materials Inc., Texas Instruments Inc., and other companies Among them, Corning will specifically build a new factory in Kentucky to produce glass for Apple and will increase its local workforce by 50%. Corning has been supplying glass to Apple since the launch of the first-generation iPhone and has produced it in the same factory.

Previously, Apple had promised to invest $500 billion in the United States over the next four years, and the newly announced investment accelerates this commitment, adding approximately $39 billion in spending and creating an additional 1,000 jobs each year. As a result, Apple's total investment commitment in the United States has reached $600 billion.

The previously established $500 billion investment includes building a new server manufacturing plant in Houston, establishing a supplier academy in Michigan, and further collaboration with existing U.S. suppliers.

Apple's new commitment comes at a time when Trump is fully advancing his tariff plan. Analysts believe that this plan may increase the operating costs of Apple's entire international supply chain.

Trump also plans to impose a 50% tariff on India, a key production base for Apple. According to [Xinhua News Agency](http://美国将对印度输美产品额外征收 25% 关税%20https//h.xinhuaxmt.com/vh512/share/12677928?docid=12677928&newstype=1001&d=13500b7), based on an executive order signed by Trump on July 31, the U.S. will start imposing a 25% tariff on goods imported from India beginning August 7. With the additional tariffs announced on the 6th, the overall tariff rate on Indian goods imported into the U.S. will be 50%.

Doubts Remain About Whether Investment Plans Can Be Realized

Cook himself attended Trump's inauguration and donated to his inauguration committee; he has been lobbying the government for tariff exemptions for Apple's iPhones. Currently, most iPhones sold in the U.S. come from India, while other products like the Apple Watch, iPad, and MacBook are primarily produced in Vietnam, which has already been subjected to a 20% tariff.

Since Trump won the 2024 presidential election, dozens of corporate CEOs, including Cook, have visited Trump's Mar-a-Lago estate in Florida and the White House, hoping to gain support from the new administration and announcing new investment plans worth hundreds of billions of dollars.

However, according to previous media reports, many of these investments were actually planned before the election or are on par with previous investment levels. Economists also question whether these promised investments and new job opportunities will ultimately be realized.

Although Apple's promised investment scale is substantial, it still falls short of the goal envisioned by Trump and senior White House officials to "fully relocate production back to the United States." Earlier this year, just a day after Trump's meeting with Cook at the White House, he threatened that if Apple did not move iPhone production to the U.S., it would face tariffs of at least 25%.

Last week, Cook stated in a conference call with analysts that while Apple is always committed to optimizing its supply chain, the company will ultimately "do more in the United States."