US government threatens to impose 25% tariff on semiconductors import

Following its policy of imposing new taxes on imported products, Trump administration now threatens to impose 25% tariff on semiconductors produced outside the United States. This same rate would be imposed on pharmaceutical products as well.

The information came from the country’s own president, who further stated that the rate could rise “substantially” after being established. Trump did not say, however, when this fare can start to be charged. According to him, companies will have some time to establish their production lines in the US.

“We want to give them some time to come because, you know, when they come to the United States and have their facilities or factories here, there is no tariff. So we want to give them a little chance, ”said the US President last Tuesday, the 18th.

This time window raises questions. According to Tom’s hardware, establishing a US semiconductor factory takes about 38 months, which would give most of Trump’s term. It is hard to imagine a 25% rate being imposed so close to new elections, so perhaps the decision is accompanied by measures to accelerate the creation of these facilities.

Impact on prices is inevitable for a 25% rate

Of course, when we talk about tariffs, consumer concern is increasing the prices of end products. With a 25% rate on something as comprehensive as “semiconductors”, it is difficult to predict how far the impact of tax on consumer products is going, but it would be inevitable for a good amount of them.

Related News:

The current 10% rate against China has already resulted in one of the first official price increase ads, with Acer raising the amount it charges for its notebooks. Depending on how companies respond to pressure to make their products manufacture in the US, increments can be even higher ahead.