President Trump has announced plans to impose tariffs on foreign-made computer chips, semiconductors, and pharmaceuticals, in particular those originating from Taiwan, claiming the tariffs would incentivize tech companies to manufacture chips in the US instead of Taiwan.
"In the very near future, we are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States," Trump said during his speech to House Republicans on January 27. “They left us and they went to Taiwan, which is about 98 percent of the chip business by the way, and we want them to come back. We don’t want to give them billions of dollars like this ridiculous program that Biden has – give everyone billions of dollars."
He added: “They already have billions of dollars. They’ve got nothing but money, Joe [Biden]. They didn’t need money, they needed an incentive and the incentive is going to be that they’re not going to want to pay a 25, a 50, or even a 100 percent tax. They’re going to build their factory with their own money. We don’t have to give them money. They’re going to come in because it’s good for them to come in. They’re giving them money, they don’t even know what they’re going to do with it. I had people tell me we didn’t need money.”
