Trump says he will put 100% tariffs on computer chips — with a big carve-out for companies like Apple

President Donald Trump said on Wednesday that he will impose a triple-digit tariff on computer chips, a move that could jack up the prices of electronics.

Trump made the announcement on the same day Apple said it was investing an extra $100 billion in the U.S., bringing the total of its planned corporate spending in the U.S. to $600 billion over four years. Like other major U.S. firms, Apple has said it is focused on building out its U.S. supply chain and onshoring more of its specialized manufacturing. In the past, Trump has lambasted Apple for not producing its iPhone in the U.S.

The president signaled earlier this week tariffs would soon be applied to computer chips. Now, those are closer to becoming reality with a big carveout that could spare U.S. corporate behemoths like Apple from actually paying those steep tariffs.

“We’re going to be putting a 100% tariff on chips and semiconductors but if you’re building in the United States of America, there is no charge,” Trump said in the Oval Office alongside Apple CEO Tim Cook.

“But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump added.

Cook also presented what appeared to look like an engraved silicon disk with a 24-karat gold base produced in an Apple factory to the president. He delivered brief remarks and said Apple would rely on glass made in Kentucky for every iPhone and Apple watch sold around the world. But he stopped short of meeting the president's past demand to produce the iPhone entirely in the U.S., given the steep costs.

The White House did not provide details such as the tariff's eventual timing or the threshold to avoid being subject to the import taxes.

Apple’s announced spending is the latest in a parade of similar moves by Nvidia, Intel, IBM and other large U.S. companies to ramp up their domestic investments. Trump has used those to tout the success of his tariff-heavy economic agenda. Still, a chunk of that spending was planned by U.S. companies before he took office. 

Earlier in the day, Trump had doubled the tariffs on India to 50% over its continued purchases of Russian oil. The rate is among the largest yet in his global trade wars. It drew strong criticism from the Indian government that it was being unfairly singled out when other nations are also big customers for Russian oil.

Trump hinted others like China could also face punitive tariffs if they keep buying Russian oil. “You're going to see a lot more,” Trump said. “You're going to see so much secondary sanctions.”