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WASHINGTON (AP) – Former President Donald Trump, during a meeting with apple CEO Tim Cook at the White House on Wednesday, August 6, 2025, announced his intention to impose new tariffs on computer chips imported into the United states. This move signals a significant departure from the bipartisan CHIPS and Science Act of 2022 and reflects Trump’s belief that tariffs will incentivize domestic chip manufacturing.
Trump’s strategy centers on increasing the cost of imported chips, aiming to compel companies to establish production facilities within the U.S. He posits that higher costs will outweigh the expenses associated with domestic manufacturing, despite potential impacts on corporate profits and consumer prices for electronics like mobile phones, televisions, and refrigerators. The proposed tariffs have sparked debate regarding their potential economic consequences.
President Donald Trump speaks as he makes an announcement about Apple with Apple CEO Tim Cook in the Oval Office, Wednesday, Aug. 6,2025,in Washington. (AP Photo/Alex Brandon)
This approach contrasts sharply with the $52.7 billion CHIPS and Science Act, signed into law by President Joe Biden in August 2022. The CHIPS Act provides funding for semiconductor manufacturing, research and development, and workforce training. Key provisions include $39 billion in manufacturing incentives, $13.2 billion for research and development, and $5 billion for workforce development programs. The legislation aims to attract private investment through a combination of grants, loans, and tax credits. Intel, for example, has announced plans to build a $20 billion chip manufacturing complex in Ohio, partially funded by the CHIPS act.
While the CH
