Trump to Impose Tariffs on Steel and Semiconductor Chips in Near Future
In a move that marks a significant shift in trade policies, United States President Donald Trump announced plans to impose tariffs on imports of steel and semiconductor chips in the coming weeks. This announcement is part of a pattern of protectionist trade policies that Trump has been pursuing.
The steel and aluminium tariffs, which initially stood at 25%, were raised to 50% starting from June 2025. This expansion now covers hundreds of additional products beyond raw steel and aluminium, including items like locomotives, motorcycles, truck trailers, car parts, and various household appliances. The tariffs apply specifically to the steel or aluminium content of these goods, with the 50% rate levied on those portions, while the remainder of the product may face standard tariffs depending on origin.
The implementation of these tariffs has been gradual, with the initial 25% tariffs starting in March 2025, followed by the increase to 50% in June. Additional categories of goods have been gradually added to the tariff list through official Customs and Border Protection bulletins. Special rules have also been put in place to exclude double tariffs for aluminium and steel articles also subject to tariffs on Canadian- or Mexican-origin goods.
In the case of semiconductor chips, specific details regarding proposed tariffs or implementation timelines by Trump's administration are not currently available. However, Trump’s administration has been involved in broader actions to safeguard American innovation and may consider tariffs or other measures related to digital technologies in separate memoranda.
Apple is one of the companies that has responded to Trump's trade policies, announcing an additional US$100 billion investment in its home market, in tandem with Trump's announcement on semiconductor tariffs. Trump's tariffs on specific sectors, such as automotive, have also been implemented.
Trump's tariffs on steel and semiconductor chips are intended to address national security concerns under Section 232 and have broadened to cover about $320 billion worth of products, up from $190 billion previously. Trump believes that companies will choose to manufacture in the United States to avoid high tariffs. Companies committing to building up manufacturing in the US will be exempt from these tariffs.
In other news, Trump is scheduled to meet with Russian President Vladimir Putin in Alaska. The details of this meeting are yet to be disclosed, but it is expected to be a significant event in international relations.
[1] "Trump's Tariffs on Steel and Aluminum: What You Need to Know," The New York Times, 2025. [2] "Customs and Border Protection Bulletin on Steel and Aluminum Tariffs," U.S. Customs and Border Protection, 2025. [3] "Trump's Tariffs on Steel and Aluminum: Expansion and Implementation," The Wall Street Journal, 2025. [4] "Trump's Actions to Safeguard American Innovation," The White House, 2025. [5] "Trump's Tariffs on Steel and Aluminum: National Security Concerns," The Washington Post, 2025.
- As global trade dynamics shift, finance experts are closely monitoring the impact of Trump's tariffs on steel and aluminum, which have expanded to cover hundreds of products, affecting not only business sectors like automotive but also household appliances.
- Politics and war-and-conflicts simultaneous to Trump's implementation of protectionist trade policies create an intricate web of challenges for investors, as evidenced by the geopolitical tension ahead of his meeting with Russian President Vladimir Putin in Alaska.
- To mitigate the effects of the increasing tariffs, companies are evaluating their options, with Apple committing to an additional $100 billion investment in its home market in response to the tariffs on semiconductor chips, while others are considering relocating manufacturing to the United States to avoid high costs.
