Overview

• President Donald Trump said he will set new tariffs on steel and semiconductor imports starting next week to compel companies to relocate production to the United States.
• He indicated that the initial duties will be modest and rise over time but did not specify exact rates or implementation dates.
• The move follows previous threats of 100% levies on chips and updates an existing global tariff regime that already doubled steel and aluminum duties to 50% and added 15% surcharges on EU imports.
• Economists warn that broad chip tariffs without exemptions could drive up US electronics costs since most advanced semiconductors are made in Asia, especially by Taiwan’s TSMC.
• The administration’s escalating tariff strategy has triggered WTO disputes and prompted EU officials to consider retaliatory measures, intensifying diplomatic tensions.