By Josh Boak
Washington (AP) – President Donald Trump On Wednesday he said that he will impose a 100% rate on computer chips, which will probably increase the costs of electronics, cars, household appliances and other goods that are considered essential for the digital age.
“We will place a rate at about 100% on chips and semiconductors,” Trump said in the Oval Office as he met Apple CEO Tim Cook. “But if you build in the United States of America, there is no costs.”
The Republican President said that companies that make computer chips in the US would be saved the import tax. During the Covid-19-PandemieA shortage of computer chips increased the price of cars and contributed to an overall increase in inflation.
Questions sent to Chipmakers Nvidia and Intel were not answered immediately.
The demand for computer chips is climbing worldwide, with turnover in June by 19.6% in the year, according to the World Semiconductor Trade Statistics Organization.
Trump’s tariff threats mark an important break of existing plans to breathe new life into the production of computer chip in the United States. He chooses an approach that promotes the proverbial stick above carrots to stimulate more production. In essence, the President bets that higher chip costs would force most companies to open factories in their own country, despite the risk that rates can squeeze business profits and increase prices for mobile phones, TVs and refrigerators.
The two -part, on the other hand Chips and Science Act signed in the law in 2022 by the then president Joe Biden provided more than $ 50 billion to support new computer chip factories, financing research and train workers for industry. The mix of financing support, tax credits and other financial incentives was intended to attract private investments, a strategy that Trump was vocal against.
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