Trump Slaps 100% Tariff On Semiconductors, No Tariff If They’re Made In The US

Chip-related shares went down today after Trump’s semiconductor tariff rate announcement.

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The tyrant of tariffs, US President Donald Trump strikes again as he recently announced a proposed tariff of about 100% on semiconductor chips manufactured and imported from outside the US.

According to a report by news daily Free Malaysia Today, the US president said to reporters in the Oval Office on Wednesday (6 August) that the new tariff rate would apply to “all chips and semiconductors coming into the US”, except for companies that have commited to manufacturing them there.

“So 100% tariff on all chips and semiconductors coming into the US. But if you have made a commitment to build, or if you’re in the process of building (in the US), as many are, there is no tariff,” Trump said.

Chip-related shares went down earlier today (7 August) after Trump’s semiconductor tariff announcement.

A Malay Mail report said Tokyo Electron, a major Japanese producer of chipmaking equipment dipped by 3.4 percent as markets opened in Tokyo, while chipmake Renesas was down 2.5 percent.

Meanwhile in South Korea, Seoul chipmaking giant plunged 2.9 percent, while traders awaited the market’s opening in Taipei, where TSMC, the world’s largest maker of chips is listed.

According to usimportdata.com, the number one largest export from Malaysia to the US are electrical machinery and equipment, with a value of $23.72 billion (roughly RM100 billion) in 2024.

This is followed by nuclear reactors and machinery at $6.31 billion (RM26.6 billion) and optical, medical, and surgical instruments at $3.89 billion (RM16.4 billion).

Trump lowered the tariff on Malaysian imports earlier

On 1 August, the US government lowered tariff rates on Malaysian imports down to 19 percent from 24 percent in July.

The US President also wrote a letter addressed to the Yang Di-Pertuan Agong Sultan Ibrahim on 7 July offering zero tariffs on Malaysian goods entering the US, should Malaysia or any company based here choose to build or manufacture products within the States.

Trump is set to visit Malaysia for the ASEAN-US Special Summit, held in conjuction with the 47th ASEAN Summit this 26 October.

The purpose of the special summit is to host a high-level meeting between the leaders of all ten ASEAN countries and the US president to formally address pressing regional issues.

Its immediate purpose is ASEAN’s collective response to the proposed US tariffs — ranging from 25% and 49% — on automotive, semiconductor, pharmaceutical, and electronics imports.

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Shahril Bahrom

Shahril Bahrom is a Malaysian digital journalist known for his work with The Rakyat Post and World Of Buzz, covering social issues, technology, pop culture, and viral online trends. His writing combines accessible storytelling with strong awareness of Malaysian internet culture, often focusing on topics that resonate across social media and public discourse. Known for a conversational yet informative style, he specialises in digital-first journalism, human-interest stories, and trend-driven reporting that bridges mainstream news with contemporary online conversations.