Trump imposes 100% rates on chips and semiconductors. TSMC Exempt

by Andrea
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Trump imposes 100% rates on chips and semiconductors. TSMC Exempt

BONNIE CASH ; POOL/EPA

Trump imposes 100% rates on chips and semiconductors. TSMC Exempt

Commemorative sign of the announcement of President Donald Trump and Apple CEO Tim Cook of an additional $ 100 billion investment from Apple in the USA in the White House Oval Hall in Washington, DC, USA.

Prices for mobile phones, televisions or refrigerators may go up, but Apple has presented a plan alongside Trump in the White House. “Reciprocal” tariffs start this Thursday with a hanging threat of Trump: “If the EU does not invest …”

US President Donald Trump announced on Wednesday that he will impose a 100% rate On the importation of chips and semiconductors, used in electronic devices, cars, appliances and other technological goods.

“We will impose a tariff of approximately 100% on the chips and semiconductors,” Trump said in the White House oval room during a meeting with Apple’s executive president, Tim Cook, without specifying, for now, the date of entry into force of this new rate.

“But with [os fabricantes] are producing in the United States, there is no charge“Trump said, who presents his tariff policy as a solution to attracting industrial investments in the country.

Trump’s tariff threats mark a break with existing plans to reactivate chip production in the United States, a cutting-edge technology industry where US companies such as Taiwanese TSMC and South Korean Samsung, among others.

Despite the risk that tariffs can compress companies’ profits and rise the prices of mobile phones, televisions or refrigerators, Trump intends to force most manufacturers to open in the United States production unitshighly sophisticated and requiring large investments.

The approach contrasts with that of former President Joe Biden, who made available incentives of more than $ 50 billion (43 billion euros) to support new chip and semiconductor factories, finance investigation and train workers to the sector.

The combination of financial support, tax credits and other financial incentives aimed to attract private investment, a strategy to which Trump vehemently opposed.

Apple “Returns home”

Alongside Trump at the White House, the executive president of Apple announced this Wednesday his commitment to invest another $ 100 billion (85 billion euros) To expand its production in the United States, raising its total investment in the country to $ 600 billion (514 billion euros) over the next four years, with the aim of avoiding future tariffs.

About Apple’s investment, Trump said it was “one of the most significant commitments in what became one of the biggest impulses of the investment in history”.

In this sense, the president celebrated the fact that companies like Apple were “returning home.”

“Our products are conceived here. We have hired and grew up here, and we created 450,000 jobs with thousands of suppliers and partners in all 50 states,” said Tim Cook, declaring himself committed to “innovation and manufacture in the United States.”

A China It has been Apple’s main manufacturing and assembly base in the last twenty years, but more recently, the company has transferred part of its production to Vietname, Thailand and India.

Apple announced in February that it planned to invest $ 500 billion and hire 20,000 people in the United States over the next four years, and opens up an artificial intelligence equipment production unit in Texas.

One of Trump’s goals is that Californian company starts making its popular iPhones in the United States.

Apple has now announced that it will increase investments in many of its US suppliers, but some of these companies are headquartered in the United States and manufacture their components for technological products abroad, according to The New York Times.

Cook announced today that “very soon” and for the first time, all new iPhones and Apple Watches sold anywhere in the world will have Glass made in Kentucky.

TSMC bought protection

TSMC semiconductor taiwanese giant, considered the largest chip manufacturer in the world, “It is exempt” of the customs of 100% Impted by US President Donald Trump on semiconductors, said a guardian in Taipe.

“Being the main exporter of Taiwan and having factories in the United States, TSMC is exempt,” said Liu Chin-Ching, director of the National Development Council, during a meeting in Parliament.

However, Liu needed that other Taiwanese chips manufacturers will “be affected” by tariffs. “We will continue to observe the situation and propose short and medium term aid measures,” he explained.

TSMC’s actions, the world’s main manufacturer of advanced chips, reached a maximum In the Taipé Stock Exchange, in a movement stimulated by the conviction that the giant will escape the imposition of tariffs due to investments announced in the United States.

TSMC titles reached 4.89% climbsreaching 1,180 Taiwanese dollars (33.9 euros) at 11:30, local time (03:30 TMG), thus boosting the Taipé Stock Exchange reference index, Taiex, which registered an advance of 2.32%, or 543.68 points, at the same time.

For several months Donald Trump, who accuses Taiwan of sabotaging the US industry of semiconductor, had been making this threat.

To protect itself as the largest chip manufacturer in the world, TSMC in March that would invest the colossal amount of $ 100 billion (85 billion euros) In the United States to build factories in the country.

TSMC produces chips used in all technological areas, from Apple’s iPhones to Nvidia’s state -of -the -art artificial intelligence equipment.

The concentration of the manufacture of chips in Taiwan was defined for a long time under the concept of “Silicon Shield”protecting it from an invasion or blockade from China and encouraging the United States to defend it against Beijing. But this massive TSMC investment can undermine the Taiwanese economy and weaken this “shield.”

Taiwan continues to be affected by temporary 20% overflows on their products, except for semiconductors, while waiting for an agreement between Taipe and Washington.

The archipelago, which Beijing claims as part of its territory, has also pledged to increase energy purchase to the United States and raise its military expenses to more than 3% of GDP in order to avoid new rates.

“Reciprocas” start today. And if the EU does not invest …

However, the announced global tariffs, which Trump classifies as “” and should have entered into force on 1 August, enter Thursday, says 7, in active.

The US then begins to apply its new tariff plan, which includes a global minimum of 10% and from 15% to countries with a commercial surplus with the US.

About 40 countries are subject to additional tariff for the countries with which the United States consider having a commercial deficit, including Costa Rica, Ecuador, Venezuela and Bolivia.

The value of new customs rights, which will affect several dozen countries, ranges from 10% to 41%, and products from the European Union, Japan and South Korea will be taxed at 15% and those of the United Kingdom by 10%.

In the case of the European Union, in late July, a trade agreement was reached with the US, although on Tuesday President Donald Trump threatened to impose 35% ratesif the block does not invest the $ 600 billion that accepted injecting into the US economy.

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