Say what you will about Trump's tariffs, they certainly make for, let's say, 'interesting' times. And in case you were in any doubt about the purpose and spirit of these levies, Trump's latest comments to chip giant TSMC should clear things up: "All I did is say if you don't build your plant here you're gonna pay a big tax... 25, maybe 50, maybe 75, maybe 100%."
Trump said this at a recent Republican National Congressional Committee event (via ). There's more than a slight ring of strong-arm tactics in that, to my ears, but President Trump's argument would doubtless be that if it works, it works. It 'working' here would mean TSMC moving its production to the US, and to be fair to this bold tariff strategy, .
To be clear, these tariffs u31 เครดิตฟรี 188 place a tax on US consumers whenever they buy affected goods. The argument is that this will disincentivise people from buying these goods, which will detract from company profits. The end-goal, of course, being to have the company reconsider their manufacturing bases.
Tariffs can cause problems for affected companies in ways we might not initially expect, too. Just take a look at (via ) for steel and aluminum: plenty of hoops to jump through.
And of course, manufacturing chains are complex and can go through multiple stages in multiple different countries. It'd be rare for a global company not to be affected in some way, even if their end-products aren't being taxed.
Some of and are now being produced at TSMC's Arizona fab, and I suppose time will tell whether the US's massive tariff threats move the semiconductor industry more decidedly in a US-centric direction.