trump's chip tariff: a redundant move?
washington, Monday, 11 August 2025.
donald trump’s proposed tariffs on semiconductors may not significantly impact us chip manufacturing. despite the 2022 chips act already incentivizing domestic production through substantial funding and tax credits, trump aims to impose tariffs of 100%. this raises concerns regarding the efficacy of tariffs as a standalone strategy. the impact on industry giants like nvidia, tsmc, and asml remains uncertain, as companies have already invested in the us due to existing incentives. will tariffs truly bolster the domestic semiconductor industry, or will they prove to be an unnecessary measure?
tariff details and exemptions
Trump announced plans to impose tariffs of approximately 100% on imported semiconductors [3][6]. However, exemptions would be granted to companies that have either established or pledged to establish manufacturing facilities within the united states [3][6]. This announcement was made alongside apple ceo tim cook, as apple unveiled an additional $100 billion investment plan in the u.s [3]. trump emphasized that companies building or committing to build factories in america would not be subject to these tariffs [3][6].
apple’s investment and tariff strategy
Apple’s $100 billion investment is viewed as a significant win, aligning with the trump administration’s strategy to incentivize domestic manufacturing through tariff exemptions [3]. this investment includes new manufacturing initiatives aimed at shifting more of apple’s production to the united states [3][4]. partners in apple’s ‘american manufacturing plan’ include corning, applied materials, and texas instruments [3]. corning, for instance, is establishing a dedicated facility in kentucky for apple glass production, increasing its workforce in the state by 50% [3][4].
nvidia’s revenue sharing agreement
Nvidia and amd are expected to remit 15% of their ai chip sales revenue in china to the u.s. government, a highly unusual financial arrangement [2]. this agreement, reportedly reached after nvidia secured permission to sell modified ai chips to china, effectively makes the federal government a partner in nvidia’s chinese operations [2]. this revenue-sharing model is projected to generate over $2 billion for the u.s. government [2]. nvidia’s h20 chip sales in china are projected to exceed $15 billion by year-end, while amd anticipates $800 million in sales [2].
expert opinions and market impact
Some national security experts have criticized the revenue-sharing agreement, cautioning that it could incentivize beijing to pressure other companies for similar concessions [2]. lisa tobin, former china affairs director at the national security council, described it as a ‘strategic blunder’ that prioritizes corporate profits over national security [2]. despite these concerns, nvidia maintains that it complies with u.s. government regulations on overseas sales, emphasizing its commitment to maintaining competitiveness in china and globally [2]. the long-term impact on nvidia’s and amd’s stock values remains to be seen, contingent on market reactions and geopolitical developments [alert! ‘market reaction not available in given sources’].