The new edition of Trump’s customs war. A hit on technology companies
Trump threatens 100 % duties on chips and semiconductors. Only production in the USA will protect technology from new fees.
Donald Trump announced that if technology companies do not transfer the production of chips and semiconductors to the USA, they would be burdened with a 100 % duty-writes “Puls Biznesu”. The warning fell in the oval office during the meeting of the former president with the head of Apple, Tim Cook.
“We will impose a duty of about 100 percent on chips and semiconductors,” said Trump. “But if you produce in the United States, there are no fees,” he added.
Cook appeared in the White House in connection with the declaration of increasing the Apple investment in the USA by another $ 100 billion. The Associated Press reminds that since the beginning of Trump’s term, the largest technology companies have announced investments in the USA at a total of USD 1.5 trillion. Apple itself has already declared $ 600 billion.
Apple invests, actions are growing. The market reacts to the threat of customs
Trump emphasized that companies that decide to produce in the US will avoid additional costs:
– Good news for companies such as Apple is that if you are building in the United States or you undoubtedly committed to build in the United States, there will be no fees – he emphasized.
The reaction of the stock exchange was immediate – Apple shares went up both during Wednesday’s session and in deposited trade. Investors hope that increasing investments in the USA will allow the company to avoid losses caused by the potential customs of Trump to import from China and India, where iPhones are produced today.
Meanwhile, as “Puls Biznesu” notes, the global demand for chips is still growing. According to the World Semiconductor Trade Statistics data, the sale of semiconductors within 12 months ended in June increased by 19.6 percent.
Trump’s duties have become a fact
We would like to remind you that from 1 August new customs rates are in force in the USA. Pursuant to the regulation signed by Trump, imports from over 70 countries were covered by elevated tariffs – most often at 15 percent. Some countries, such as the EU or Japan, have benefited from lower rates thanks to commercial contracts. This is the largest tightening of the US customs policy since the 1930s.
