President Trump says chip tariffs come “very soon”

President Trump’s elevated global tariffs shook the stock exchange after being announced on Tuesday, with almost every major technology company downloading double -digit. The semiconductors were largely spared by immediate impact, as Taiwan and other nations were released. Most electronics sold in the United States are powered by chips made in Asia, which means that tariffs would have a significant impact on prices. But Trump told the White House press on Thursday that semiconductor rates would be imposed “very soon”.

Alien tariffs have already made Nintendo announce a delay in US pre -orders for Switch 2 while evaluating the potential impact of tariffs. And klarna, start-up-to-no-payment make a meme for giving customers Pay for food supplies Of contributions, slow down your planned IPO Friday. Global economic uncertainty probably hurts the business case of Chipotle Burritos financing through zero interests, unsecured loans.

President Trump has already threatened to impose large tariffs on semiconductors made abroad as the US aims to build more important technologies in the country. China Closing Shanghai in 2022. Above an epidemic of Covid-19, it emphasized the risk of reading long international supply chains for basic production. TSMC, one of the main chip manufacturers who makes NVIDIA and Apple likes, has carried out more than $ 100 billion to open production and research facilities in the United States, but it takes a long time. Dan Ives, analyzer at Wedbush Securities, calculated It will take Apple three years and $ 20 billion to move ten percent of US production

If President Trump is trying to make the United States more competitive in production, it makes some sense to include chips in the tariffs. Local producers like Intel rely on foreign hardware to build their chips locally, and with tariffs on the spot, this hardware will cost more, which means that the chips themselves will not be competitive for those built abroad.

Tom’s hardware in detail How chip prices can increase at new rates:

For example, if there is a 25% NVIDIA AI GPU tariff that the company sells for $ 50,000 with a 75% gross margin, then NVIDIA will have to declare a value of $ 12,500 and pay a duty of $ 3.125. Such a tariff will either damage the NVIDIA margins, or make its graphics more expensive for buyers in America. For the next -generation data centers of Elon Musk, which are willing to contain a million Graphics processorsThis means $ 3.125 billion additional costs.

President Trump said the tariffs imposed on Wednesday are intended to create equal conditions for production. And while it makes sense to move some production back to the United States, it takes many years. The products made in the country will still be more expensive than the alternatives made abroad. Labor in the United States is expensive, and the protection and provisions of workers contribute to this weight. America has long been an economy of services; People in the US do not want to do hard work.

Certain sectors such as the production of chips may be viable to redirect to the United States, as they are a business with a bigger margin than goods of goods such as toasters or shoes. But it is unclear whether physical products made in the United States will ever be competitive worldwide. The largest economy in the world is skillful in services – design products, code writing – and leaving the elbow work to other countries. Even if the production of permanent goods returns to America, there is a widespread belief that Much of it will be automatedSuch as Tesla Optimus robot. Amazon continues to invest strongly in automating his factories.

According to tariffs, it could predict Americans who pay more for lower-quality goods, especially making the new low-income Americans tax regressive. And for business, they could make US companies less competitive, as their costs of doing business will be higher. And this is a time when China competes forward in flights like AI and Automotive.

Many economists believe that the budget deficit they are currently facing the United States means that the country spends more imported goods than it is exporting. But there are other ways to balance books that would not hurt Americans in the process, such as negotiating drug prices.

President of the Federal Reserve Jay Powell said on Friday The fact that Trump’s tariffs are likely to reach “higher inflation and more slow growth” and warned that unemployment could increase after a few months. But he added that the Federal Reserve would not immediately lower interest, which could reduce the impact. Which means Powell does not plan to save Trump, despite the widespread criticism of the business community tariffs.