WASHINGTON (AP) — President Donald Trump said Wednesday that he will impose a 100% tariff on computer chips, raising the specter of higher prices for electronics, autos, household appliances and other essential products dependent on the processors powering the digital age.
“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. "But if you’re building in the United States of America, there’s no charge."
The announcement came more than three months after Trump temporarily exempted most electronics from his administration's most onerous tariffs.
The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation.
Investors seemed to interpret the potential tariff exemptions as a positive for Apple and other major tech companies that have been making huge financial commitments to manufacture more chips and other components in the U.S..
Big Tech already has made collective commitments to invest about $1.5 trillion in the U.S. since Trump moved back into the White House in January. That figure includes a $600 billion promise from Apple after the iPhone maker boosted its commitment by tacking another $100 billion on to a previous commitment made in February.
Now the question is whether the deal brokered between Cook and Trump will be enough to insulate the millions of iPhones made in China and India from the tariffs that the administration has already imposed and reduce the pressure on the company to raise prices on the new models expected to be unveiled next month.
Wall Street certainly seems to think so. After Apple's stock price gained 5% in Wednesday regular trading sessions, the shares rose by another 3% in extended trading after Trump announced some tech companies won't be hit with the latest tariffs while Cook stood alongside him.
The shares of AI chipmaker Nvidia, which also has recently made big commitments to the U.S., rose slightly in extended trading to add to the $1 trillion gain in market value the Silicon Valley company has made since the start of Trump's second administration.
The stock price of computer chip pioneer Intel, which has fallen on hard times, also climbed in extended trading.
Inquiries sent to chip makers Nvidia and Intel were not immediately answered. The chip industry's main trade group, the Semiconductor Industry Association, declined to comment on Trump's latest tariffs.
Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization.
Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the U.S. that were drawn up during the administration of President Joe Biden.
Since taking over from Biden, Trump has been deploying tariffs to incentivize more domestic production. Essentially, the president is betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators.
By contrast, the bipartisan CHIPS and Science Act that Biden signed into law in 2022 provided more than $50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed.
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Liedtke reported from San Ramon, California.
President Donald Trump makes an announcement about Apple in the Oval Office, Wednesday, Aug. 6, 2025, in Washington. (AP Photo/Alex Brandon)
WASHINGTON (AP) — Sen. Thom Tillis isn't holding back during his final year in Washington.
“I'm sick of stupid,” the two-term Republican from North Carolina said from the Senate floor recently as he derided President Donald Trump 's advisers for stoking a potential U.S. military takeover in Greenland.
It was just one of several moments during the opening weeks of 2026 when Tillis, who isn't seeking reelection, seemed unconstrained by the anxieties that weigh down many of his GOP colleagues who are loath to cross the White House for fear of triggering a political backlash.
He's one of just two Republicans, along with Alaska Sen. Lisa Murkowski, who participated in a congressional delegation to Denmark this week while Trump threatens to seize Greenland. He was quick to criticize the Justice Department's investigation of Federal Reserve Chairman Jerome Powell. As Trump and his allies try to rewrite the history of the Jan. 6, 2021 riot, Tillis backed the eventual display of a plaque honoring police who defended the Capitol that day.
He has shown particular frustration with Trump's top aides, notably deputy White House chief of staff Stephen Miller.
“I don't want some staffer telling me what my position is on something,” he said after Miller gave a forceful interview on CNN saying Greenland “should be part of the United States.”
“He made comments out of his depth,” Tillis added.
The moves reflect the sense of freedom lawmakers often feel when they know they won't have to face voters again. They've helped attract swarms of reporters who follow Tillis through the halls of Congress as he offers candid thoughts on news of the day. And they've won support from the handful of other Republicans who sometimes cross Trump, including Murkowski, who called out “good speech!” as she passed him in the Capitol following his floor remarks on Greenland.
For the 65-year-old Tillis, who has won elections in one of the most politically competitive states, the approach is notable for the way in which he's pushing back against the White House. He's hardly staking out a position as a never-Trumper and repeatedly — often effusively — expresses support for the president.
Rather, he's targeting much of his criticism at senior White House aides, sometimes raising questions about whether Trump is receiving the best advice at a consequential moment in his presidency as the GOP enters a challenging election year.
“I really want this president to be very, very successful,” Tillis said this week. “And a part of his legacy is going to be based on picking and choosing the right advice from people in his administration.”
Heading into the midterms, Tillis said, “I want to create a better environment for Republicans to win.”
Tillis, who had a challenging childhood involving multiple moves, worked at an accounting and consulting firm before entering politics. He was the speaker of North Carolina's House of Representatives from 2011 to 2015. He said this week that he approaches his concerns from a business perspective.
“Sometimes there's just things that people need to say, ‘not a good idea, not in our best interest, hard to implement,” he said. “I probably should have started by saying that’s what I did in the private sector for about 25 years.”
Beyond Miller, Tillis has raised questions about Homeland Security Secretary Kristi Noem's immediate response to the fatal shooting of Renee Good by an ICE officer in Minneapolis. Hours after the shooting, while an FBI investigation was still unfolding, Noem defended the officer and said Good “attempted to run a law enforcement officer over.”
Speaking to reporters on Capitol Hill the next day, Tillis said he was “surprised by the level of certainty in her comments” and suggested such rhetoric influenced Trump, who was also quick to defend law enforcement.
“She's advising the president so the president's comments had to have come I assume through the advice of the secretary,” he said.
Tillis' balancing act was on particularly vivid display earlier this month on the fifth anniversary of Jan. 6, when he helped broker the deal to publicly show the plaque honoring officers that was held up by House Speaker Mike Johnson. Speaking from the Senate floor, he called the attack “one of the worst days in my 11 years in the U.S. Senate.”
He lauded the staff and U.S. Capitol police who defended lawmakers and helped ensure that Congress ultimately certified Joe Biden as the winner of the 2020 presidential election. But he also struck fiercely partisan tones, blaming Democrats for embracing a movement to defund the police and criticizing media coverage of protests that turned violent during the summer of 2020.
Tillis framed Jan. 6 as a “wonderful stress test for democracy” before arguing that the Biden administration went “overboard” by prosecuting “people who were dumb enough to walk into the building but they weren't the leaders.” He then pivoted to criticism of Trump's sweeping pardons of Jan. 6 defendants, including those who attacked police.
But even then, he didn't directly blame Trump, again focusing on his advisers.
“The president, on the advice of somebody in the White House — and I hope I find out the name of that person — also pardoned criminals who injured police officers and destroyed this building,” Tillis said. “If you had that happen to your office or your business, would you think well they were just a little hotheaded and let them go and not prosecute them? Or would you hold them accountable for destroying the citadel of democracy?”
The White House did not respond to a request for comment on Tillis' assessment of Trump's aides. The senator rejects any suggestion that he's stepped up his criticism because of his impeding retirement, calling the notion “hysterical.”
His relationship with Trump hit a low point last summer when he opposed the president's sweeping tax and spending cuts package. Trump accused Tillis of seeking publicity and said on social media that the senator was a “talker and complainer, NOT A DOER.” Tillis announced his retirement soon after voting against the measure, one of only two Senate Republicans to do so.
Trump has been more sanguine in response to Tillis' more recent comments. Asked this week about the senator's criticism of the Fed probe, Trump said, “That's why Thom's not going to be a senator any longer, I guess.”
“Look, I like Thom Tillis,” Trump said. “But he's not going to be a senator any longer because of views like that.”
Associated Press writer Stephen Groves in Washington contributed to this report.
FILE -Sen. Thom Tillis, R-N.C., speaks during a confirmation hearing for Supreme Court nominee Amy Coney Barrett before the Senate Judiciary Committee, Oct. 13, 2020, on Capitol Hill in Washington. (Sarah Silbiger/Pool via AP, File)
FILE - Wearing a beaded bolo around a pin that says "United States Senate," Sen. Thom Tillis, R-N.C., listens to thanks from members of the Lumbee Tribe of North Carolina, after the passage of a bill granting the tribe with federal recognition, on Capitol Hill, in Washington, Dec. 17, 2025. (AP Photo/Jacquelyn Martin, File)
