Breaking: Trump Slams Tech & Trade With Fresh Tariffs on Semiconductors and Steel

Trade tensions escalate as the former president takes aim at critical imports.

Semiconductors and steel in the crosshairs—here’s what it means for markets.

Wall Street shrugs—because what’s another tariff between friends?

TLDRs:

• Trump plans new tariffs on imported chips and steel, gradually increasing to boost domestic production.
• Apple faces $1.1 billion in extra costs from tariffs, despite strong revenue growth in Q2.
• Companies diversify manufacturing to India and Vietnam to reduce tariff exposure.
• Smaller firms struggle under tariffs, highlighting uneven economic impacts across industries.

US President Donald TRUMP is preparing to unveil new tariffs on imported semiconductor chips and steel in the coming weeks.

According to his statements, the initial rates will be relatively modest to provide time for domestic manufacturers to scale production. Over time, these tariffs are expected to rise sharply, signaling a stronger push to incentivize local manufacturing.

Earlier this year, Trump raised tariffs on steel and aluminum to 25% in February and doubled them to 50% in May. Most recently, he suggested imposing a 100% tariff on imported semiconductor chips. Companies that expand domestic production could qualify for exemptions, highlighting the administration’s focus on reshoring key industries.

Apple Faces Rising Tariff Costs

Major tech companies are already feeling the financial strain of Trump’s trade policies. Apple, whose devices are primarily manufactured in China, India, and Vietnam, expects to incur an additional $1.1 billion in tariff costs during the September quarter, CEO Tim Cook confirmed.

The company had already spent roughly $800 million on tariffs in the previous quarter.

Despite these additional expenses, Apple reported a 10% increase in quarterly revenue, reaching $94 billion, fueled by strong sales of iPhones and Macs. The company’s efforts to shift production including moving much of its iPhone output to India and other devices to Vietnam are helping mitigate the financial impact of escalating tariffs.

Supply Chain Diversification Strategies

Apple’s response illustrates a broader trend among multinational corporations: the need to diversify supply chains to reduce geopolitical risk. Nearly half of the iPhones sold in the US are now produced in India, while most Macs, iPads, and Apple Watches are manufactured in Vietnam.

Beyond immediate tariff mitigation, Apple has committed $500 billion to US-based manufacturing over the next four years, one of the largest reshoring efforts by a private corporation in recent history.

By relocating 15% to 20% of production to India and Vietnam, Apple reduces its vulnerability to sudden tariff increases, maintaining financial performance despite rising costs.

Tariffs Impact Smaller Firms Disproportionately

While large corporations like Apple can absorb additional costs, smaller companies face significant challenges. Many have struggled with layoffs or price increases due to higher material costs.

Analyses suggest that tariffs may inadvertently strengthen market concentration by favoring firms with greater financial resilience and political influence.

Apple’s special exemptions, obtained after high-level negotiations with the Trump administration, illustrate the uneven playing field. In contrast, smaller manufacturers often lack similar political leverage, highlighting disparities in how trade policies affect different segments of the economy.

Trump’s forthcoming announcement is likely to trigger further strategic shifts in global manufacturing networks. As tariffs rise and exemptions favor domestic expansion, companies worldwide will need to weigh the cost of continued imports against investing in US-based production.

For policymakers and industry leaders alike, the stakes are high,5 and the next few weeks could reshape the landscape of technology and steel manufacturing for years to come.