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Trump, Apple CEO Cook on manufacturing announcement
President Donald Trump has announced he will impose a 100% tariff on computer chips. He said that companies who make computer chips in the U.S. would be spared from the import tax. The President made these comments while meeting with Apple CEO Tim Cook at the White House.
WASHINGTON - On Thursday, President Donald Trump said he plans to put a 100% tariff on computer chips.
Trump made the remarks during a meeting at the Oval Office with Apple CEO Tim Cook.
Trump plans 100% tariff on computer chips
What they're saying:
"We’re going to be putting a very large tariff on chips and semiconductors," Trump said, adding that it would be "approximately 100 percent."
Trump said companies that make computer chips in the U.S. would be spared the import tax, however.
"100 percent tariff on all chips and semiconductors coming into the United States, but if you've made a commitment to build or if you're in the process of building as many are, there is no tariff."
What this could mean for consumers
Why you should care:
The move will likely increase the cost of electronics, autos, household appliances and other essential goods.
During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to an uptick in overall inflation.
Trump places tariffs on other imports
The backstory:
This news comes after the president placed an additional 25% tariff on India for its purchases of Russian oil, bringing combined tariffs on the country to 50%.
The tariffs are to take effect in 21 days. That means both India and Russia might have time to negotiate with the administration on the import taxes.
Why is Trump imposing tariffs?
What they're saying:
Trump has said the increased tariffs will bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports.
The other side:
Trump argues that foreign exporters will pay the cost of the tariffs, but so far economists have found that most are being paid by U.S. companies. And measures of U.S. inflation have started to tick higher as prices of imported goods, such as furniture, appliances, and toys rise.
The Source: The Associated Press contributed to this story. This story was reported from Los Angeles.