Trump says semiconductor tariffs coming soon, could reach 300%

President Trump said he would unveil tariffs on semiconductor imports over the next couple of weeks as he prepares to expand his tariff agenda to different sectors.

“I’ll be setting tariffs next week and the week after on … chips — chips and semiconductors,” he told reporters Friday.

Trump has already suggested he could set tariffs on chip imports around 100%. On Friday, he floated an even bigger number. “I’m going to have a rate that is going to be 200%, 300%,” he said.

The president has also promised duties on pharmaceutical imports in the near future.

Meanwhile, tariffs are starting to show up in economic data for the first time in a significant way. Wholesale inflation surged in July, rising by its fastest pace in around three years and stunning market observers.

So far, inflation data has shown little impact since Trump began rolling out sweeping duties in the spring. But as the tariffs become more engrained in the US economy, economists expect more data points to align with this week’s Producer Price Index report — perhaps most notably in next month’s Consumer Price Index.

So far, stock markets haven’t been phased. US stock indexes hit all-time highs this week as the world adapts. New data this week also showed that tariffs have brought in billions in revenue, though economists say a portion of that is already coming in the form of price increases on consumers.

On the negotiations front, Trump signed an executive order extending the tariff truce between the US and China for another 90 days, pushing trade negotiations out to November. Average US tariff rates on Chinese goods are currently around 55%, according to Bloomberg.

Earlier this month, Trump unveiled “reciprocal” tariffs on dozens of US trade partners (which you can see in the graphic below).

The next negotiations to watch are Canada, Mexico, and China in the coming months.

The tariffs are also facing legal limbo. Multiple challenges to Trump’s tariffs are pending in US federal courts. The one garnering the most attention is a case heard by an appeals court in July. The Court could nullify or uphold the duties at any time.

Here are the latest updates as the policy reverberates around the world.

LIVE 1683 updates

Fri, August 15, 2025 at 2:32 PM UTC

Consumers’ inflation expectations rise amid Trump tariffs

Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump’s trade policies.

Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan’s survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July.

“Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,” Joanne Hsu, the university’s Surveys of Consumers director, wrote. “However, consumers continue to expect both inflation and unemployment to deteriorate in the future.”

Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan’s Consumer Sentiment Index fell to 58.6 from 61.7 a month ago.

Trump says semiconductor tariffs coming soon, could reach 300%

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