(Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)
President Trump's reciprocal tariffs exempted semiconductors, but don't expect that to last.
The president today said he still plans on tariffing foreign-made chips. "The chips are starting very soon,” Trump told reporters on Air Force One.
Semiconductors, lumber, and pharmaceuticals were among the categories exempted from the reciprocal import tariffs. But Trump is signaling that each one will be targeted over time. “We are looking at pharma right now, pharmaceuticals, as a separate [tariff] category,” he said. “That’s under review right now."
It's unclear how much these categories will be tariffed. Trump previously warned he could tariff semiconductors at 25% or higher.
In the meantime, PC builders and the tech industry are still reeling from the reciprocal tariff announcement. The president plans to impose hefty tariffs on Taiwan, Vietnam, India, Malaysia, and Cambodia — all key markets outside of China that also manufacture PC components, video game consoles, and phones.
In addition, Trump is adding another 34% tariff on Chinese imports, bringing the total tariff amount to 54%. A baseline 10% tariff for all the affected countries will take effect on April 5, while the additional levies will activate on April 9. But notably, Canada and Mexico won't be targeted under the new tariffs.
Trump is instituting the policy to force companies to migrate their manufacturing to the US. Still, the reciprocal tariffs are expected to raise prices for all kinds of electronics, squeezing consumer wallets. One analyst estimates Apple could raise iPhone prices from $300 to $700, depending on the model, to offset the tariff costs. The price for the upcoming Switch 2 could also rise substantially since Nintendo manufactures most of its hardware in Vietnam and Cambodia, which will face a 46% and 49% tariff, respectively, under Trump’s plan.