President Donald Trump of the United States has said that a rate of approximately 100% will be imposed on semiconductor ships imported from countries that do not produce in America or plan to do this, reports Reuters.
On Wednesday (August 6, 2025), Trump told reporters in the Oval Office that the new rate would apply to “all chips and semiconductors who enter the US”. This would not apply to companies that have committed to producing such components in the US or were at the process.
“If you say for some reason that you are building (a local production site) and you are not building, then we will go back and we count it up. It accumulates and we will charge you at a later time. You have to pay, and that is a guarantee,” Trump said. His comments were not a formal rate announcement, because the White House does not yet have to spend presidential action or fact sheet.
The US president also did not give any further details about how many chips or which countries would be influenced by the new levy. Malaysia is a global player in the range of car components, in particular semiconductors who were previously said to have been exempt from American rates.
The US recently reduced its mutual rate for Malaysian export from 25% to 19%, with effect from 1 August 2025. Shortly thereafter it was revealed, Minister of Investment, Trade and Industry Tengku that Seri Zafrul Tengku Abdul Aziz said that the Pharmaceutical Products were already tailored to Malaauteuteutororen and Semiconductoren’s tower tower The new rates of 19% of 19%. Reuters reported.
With the last explanation of Trump stating that “all chips and semiconductors enter the US” would get a rate of 100%, however, it is still to be seen if the situation has changed. Other chip-making countries such as South Korea and Japan, as well as those in the European Union (EU), have agreed to act deals with the US, which could give them an advantage.
For example, the EU has agreed to a rate percentage of 15% for the vast majority of its export, including cars, chips and pharmaceutical products. In the meantime, South Korea and Japan said individually that the US had agreed not to give them any worse rates than other countries on chips, which also suggests a 15% levy. It is possible that the trade agreement of Malaysia with the US that caused the reduced rate percentage of 19% will continue to be rate-free.
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