Trump to announce tariffs on steel and semiconductors in coming weeks

US President Donald Trump said on August 15 his administration will announce new tariffs on imports of steel and semiconductor chips in the coming weeks, marking a major expansion of his aggressive trade agenda. Speaking to reporters aboard Air Force One en route to Alaska for a summit with Russian President Vladimir Putin, Trump said duties would be rolled out in phases, starting at a relatively low level and increasing sharply over time.

“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips,” Trump said. “I’m going to have a rate that is going to be lower at the beginning, that gives them a chance to come in and build, and very high after a certain period of time.” The president added he was confident that companies would choose to manufacture inside the United States rather than face punitive duties.

Steel tariffs already higher, chips under review

Trump’s remarks come just months after he doubled tariffs on steel and aluminum imports to 50 per cent, citing the need to protect domestic manufacturers. It was unclear whether his latest comments signaled another increase on those metals. On semiconductors, Trump has repeatedly hinted at sweeping new duties. Last week, he told an audience alongside Apple CEO Tim Cook that he was considering a 100 per cent tariff on imported chips, while offering exemptions to companies that commit to building fabrication plants in the United States.

On August 15, he floated the possibility of even steeper penalties. “I’m going to have a rate that is going to be 200 per cent, 300 per cent?” Trump said, without clarifying the details. The Commerce Department has been conducting national security investigations into both the chip and pharmaceutical sectors since April, a procedural step required before tariffs can be formally imposed.

Apple investment adds momentum

Trump’s tariff pledge came as Apple announced it would invest an additional $100 billion in domestic production, part of a broader $600 billion US manufacturing initiative. The move could ease some of the impact of chip tariffs on American consumers and firms reliant on Apple’s supply chain.

South Korean technology giants Samsung Electronics and SK hynix, which dominate global memory chip production, are among the companies closely monitoring Washington’s tariff plans. Semiconductor duties would ripple across industries, from consumer electronics to automobiles and artificial intelligence.

Expanding trade confrontation

The steel and chip tariffs mark the latest escalation in Trump’s broader strategy of using trade duties to reshape global supply chains and force companies to invest in the US He has already imposed sweeping tariffs on a wide array of imports, including autos, energy, and consumer goods. While Trump argues the approach will create US jobs and manufacturing capacity, critics warn higher costs could ripple through industries and worsen tensions with key allies and trading partners.

With formal tariff announcements expected within two weeks, businesses worldwide are bracing for another round of trade disruption, one that could reshape both the semiconductor market and the global steel industry.

(With inputs from agencies)