President Trump, speaking at a press briefing held in Mar-a-Lago on Tuesday, was asked about plans for tariffs on semiconductor chips and pharmaceuticals. He responded that the tariff is set to start at 25%, "and it'll go very substantially higher over the course of a year." Trump has not revealed a timeline for when the proposed tariff might come into effect, but he did say he would give impacted semiconductor and pharmaceutical companies time to build factories in the U.S. before imposing tariffs.
The announcement follows a declaration made by the Trump administration, which claims that the U.S. will create and manufacture the "most powerful" AI chips.
