Kristina Roberts
U.S. President Donald Trump has announced that he will soon set new tariffs on imports of steel and semiconductor chips. Speaking to reporters on Air Force One while on his way to meet Russian President Vladimir Putin in Alaska, Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say, chips.”
This decision is part of Trump’s wider strategy to protect and grow American manufacturing. Tariffs are extra taxes placed on goods that are brought into the country from abroad. When tariffs are high, it becomes more expensive for companies to buy products from other countries. This can push businesses to make those products inside the United States instead.
Trump explained that these new tariffs will start at a lower rate at first, giving companies some time to set up factories and production inside the country. Later, the tariffs will rise sharply. He said, “I’m going to have a rate that is going to be lower at the beginning – that gives them a chance to come in and build – and very high after a certain period of time.”
He did not give any specific numbers for the new tariffs, but his approach follows a similar pattern he has used for other industries, such as pharmaceuticals. The idea is to give businesses a small window of time to adapt before the higher costs come into effect.
Trump believes this method will encourage companies to build and produce more in the United States instead of relying on imports. He expressed confidence, saying that companies will prefer to set up manufacturing locally rather than pay high tariffs.
Over the past few years, Trump’s trade policies have caused big changes in global trade. He has raised taxes on goods coming from almost all countries, especially in industries like cars, metals, and now chips. The aim, according to him, is to make America less dependent on foreign goods and create more jobs within the country.
Earlier this year, in February, Trump increased tariffs on steel and aluminum to 25%. Just a few months later, in May, he decided to double that rate to 50% to give an even stronger push to domestic manufacturers. However, it is not yet clear whether the upcoming tariffs on steel will be an additional increase or a new plan altogether.
When it comes to semiconductor chips, the situation is even more important for the U.S. economy. Chips are used in almost every modern device, from smartphones and computers to cars and home appliances. The U.S. has been facing shortages in recent years because so many chips are made overseas, particularly in countries like Taiwan, South Korea, and China.
Last week, Trump said he would put a 100% tariff on imported semiconductor chips. This means their price would double for American buyers unless they are made in the U.S. However, companies that promise to build chip factories inside the country will not have to pay this tax. This rule is designed to reward businesses that invest in America.
The president’s latest comments came alongside news that Apple, one of the biggest tech companies in the world, plans to invest another $100 billion in the United States. While Trump did not directly link Apple’s decision to his tariffs, the timing suggests that his push for local manufacturing might be influencing corporate choices.
For Trump, steel and chips are not just products – they are symbols of economic strength and security. Steel is used in buildings, bridges, and military equipment, while chips are the brain of modern technology. By controlling more of their production inside the U.S., the government hopes to reduce dependency on other nations, especially during times of crisis.
Critics of Trump’s trade approach argue that high tariffs can lead to trade wars, where other countries retaliate by placing taxes on U.S. goods. This can hurt American farmers, exporters, and even consumers, who might end up paying more for everyday products. However, supporters believe that the short-term costs are worth the long-term gains of a stronger domestic economy.
Trump has made it clear that his main goal is to bring manufacturing back to the U.S. He has often criticized past trade deals, saying they allowed other countries to take advantage of American markets. His current strategy is to use tariffs as a tool to push companies into producing within U.S. borders.
The plan to start with lower rates is meant to be a signal to companies: they have a limited time to adjust before the tariffs get very high. If they act quickly, they can avoid the bigger costs. If they delay, they will face much higher prices when importing goods.
The global market will be watching closely over the next few weeks as the U.S. sets these new tariffs. Steel exporters, especially from countries like China and Brazil, may be hit hard. Semiconductor producers in Asia, who currently dominate the global supply, will also have to rethink their strategies if they want to keep selling to the U.S. market without paying heavy taxes.
In the long run, these tariffs could reshape how and where products are made. If more companies follow Apple’s example and invest billions into U.S. manufacturing, it could lead to more jobs, stronger industries, and a shift in the balance of global trade power.
However, this is also a risky path. Tariffs can raise production costs, which can lead to higher prices for consumers. If companies pass these costs down, Americans could pay more for cars, electronics, and even basic goods. This might cause frustration among the public, especially if the benefits of local manufacturing take years to appear.
For now, Trump’s message is clear: he wants America to make more of its own steel and chips, and he is willing to use tariffs as a powerful weapon to make it happen. The coming weeks will reveal how strongly businesses respond – and whether other countries fight back.
As the president heads into talks with Russia and continues to shape U.S. trade policy, these tariffs could become a defining part of his economic legacy. The real test will be whether his strategy delivers the growth, jobs, and independence he promises, or whether it sparks the kind of global trade tensions that could slow down economies around the world.
