The Push Comes to Increase U.S. Production

US President Donald Trump is back with another tariff warning, this time targeting semiconductors. He told reporters his administration would impose “substantial” tariffs on companies that do not move production to the U.S.

Speaking before a dinner with top technology CEOs, Trump repeated his trademark approach — pressure through tariffs. He said Apple would be safe from penalties after committing $600 billion in U.S. investments, while Asian giants like TSMC, Samsung, and SK Hynix remain under the spotlight.

A Familiar Strategy

Trump’s trade playbook remains unchanged in his second term. He uses tariffs as leverage to force companies and governments into concessions. Last month, he suggested a 100% tariff on imported semiconductors but promised exemptions for those setting up U.S. facilities.

Legal Fights Add More Drama

The drama does not end with trade. Many of Trump’s tariffs were struck down by lower courts as overreach. His administration has now asked the Supreme Court to reinstate powers under a 1977 law originally meant for emergencies.

The legal tussle adds another layer of unpredictability for businesses already adjusting to supply chain disruptions.

What It Means for India?

India has been trying to attract semiconductor investments under its ₹76,000 crore incentive plan. If Trump enforces tariffs, Asian chipmakers could face pressure to expand in the U.S. instead of diversifying into countries like India.

For Indian tech firms and electronics manufacturers, tariffs could increase costs of imported chips, adding strain to the already tight supply chain. The move may also slow down India’s ambitions to become a major semiconductor hub if global players prioritize U.S. commitments.India has pitched itself as a global semiconductor hub with a ₹76,000 crore incentive plan. But Trump’s tariff threats could force Asian chipmakers to prioritize U.S. factories over India.

This move risks slowing India’s momentum in attracting big-ticket semiconductor projects. For electronics makers in India, higher chip costs due to tariffs could squeeze margins further.

Trade Tantrums Continue

Trump’s latest outburst underscores how tariffs remain his weapon of choice. With the semiconductor industry at the center of global technology, his stance adds fresh uncertainty. For India and other chip-hungry nations, the tantrums in Washington are hard to ignore.