Trump targets steel, chips with new tariffs

U.S. President Donald Trump has revealed plans to impose fresh tariffs on steel and semiconductor chip imports in the coming weeks, a move he says is aimed at boosting domestic manufacturing.

Speaking to reporters aboard Air Force One on Friday while en route to Alaska for a meeting with Russian President Vladimir Putin, Trump stated that the tariffs would be rolled out in phases.

The initial rates, he explained, would be relatively low to give companies time to invest and expand their operations in the United States.

However, the rates would rise sharply over time to push firms towards local production.

“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips. I’m going to have a rate that is lower at the beginning. That gives them a chance to come in and build. It will be very high after a certain period of time,” The US president said.

Trump, who has repeatedly made tariffs a centrepiece of his trade policy, expressed confidence that businesses would prefer to manufacture in the United States rather than face high duties.

The announcement builds on earlier moves by the administration. In February, Trump raised tariffs on steel and aluminium to a flat 25 per cent.

 He then doubled the rate to 50 per cent in May to further bolster domestic producers. It remains unclear whether an additional hike on metals is imminent.

Last week, Trump also signalled plans to impose a 100 per cent tariff on semiconductor imports.

However, companies that commit to developing manufacturing plants in the U.S. would be granted exemptions.

The president’s remarks came alongside news that tech giant Apple will inject an additional USD100 billion into its U.S. operations. Trump described this as evidence of growing confidence in American industry.