United States president Donald Trump has said a tariff of about 100% will be imposed on semiconductor ships imported from countries not producing in America or planning to do so, reports Reuters.
UPDATE: MITI minister Tengku Zafrul told the Dewan Rakyat today (August 7, 2025) that Malaysia’s semiconductor exports to the US remain exempt from retaliatory tariffs for now, The Star reports. This was in response to question from Lim Guan Eng on Trump’s plan to impose 100% tariffs on semiconductors imported from countries not producing in America or planning to do so. Zafrul noted the exemptions may not be based on countries, but on companies that invest directly in the US, regardless of where they are headquartered.
On Wednesday (August 6, 2025), Trump told reporters in the Oval Office that the new tariff would apply to “all chips and semiconductors coming into the US.” This would not apply to companies that have committed to manufacture such components in the US or were in the process of doing so.
“If, for some reason, you say you’re building (a local production site) and you don’t build, then we go back and we add it up. It accumulates, and we charge you at a later date. You have to pay, and that’s a guarantee,” Trump said. His comments were not a formal tariff announcement, as the White House has yet to issue a presidential action or fact sheet for reference.
The US president also did not provide further specifics on how many chips or which countries would be impacted by the new levy. Malaysia is a global player in the supply of automotive components, particularly semiconductors which were previously said to be exempt from US tariffs.
The US recently reduced its reciprocal tariff on Malaysian exports from 25% to 19%, effective August 1, 2025. Soon after this was revealed, minister of investment, trade and industry Tengku Datuk Seri Zafrul Tengku Abdul Aziz said Malaysia’s pharmaceutical products and semiconductors were already exempt from US tariffs and remained so after the new tariff rate of 19% was announced, Reuters reported.
However, with Trump’s latest statement that states “all chips and semiconductors coming into the US” would face a 100% tariff, it remains to be seen if the situation has changed. Other chip-making countries such as South Korea and Japan, as well as those in the European Union (EU), have agreed to trade deals with the US, which could give them an advantage.
For instance, the EU has agreed to a 15% tariff rate for the vast majority of its exports, including cars, chips and pharmaceuticals. Meanwhile, South Korea and Japan said separately that the US had agreed not to give them worse tariff rates than other countries on chips, suggesting a 15% levy as well. It’s possible Malaysia’s trade deal with the US that brought about the reduced tariff rate of 19% will continue to see its chip exports be tariff-free.
Looking to sell your car? Sell it with Carro.
Trump, there is american that are dying
– Kourtney Kardashian
We have 2 kinds of semicon exported to USA.
The manufacturing, assembly and testing, to MNC corpos such as Micron which is based there. By right their chips made here for USA market should be exempted, Intel as well. But what about AMD who has ZERO manufacturing facility in USA but very much a Murican company?
And the more obvious local semicon companies exporting to USA, they arent in a position to setup anything more than a sales office in the US. They will be in trouble.
With 100% semicon tariffs and 19% tariffs flat Malaysia is screwed under PMX & PH.
#TurunAnwar
Malaysia form part of semiconductor manufacturing supply chain. most companies in malaysia assemble and test product belonging to other countries like japan, germans and americans. china, taiwan and korean less… so i am not sure how this trump tariff will affect our semiconductor manufacturing.
When NEC made a better and faster 8086 with V20, V30 cpu.
America used copyrights laws to crush its foreign competitor. Accusing NEC of stealing America tech.
When Taiwan UMC 2nd largest semicon created faster and more power efficient Green 80486 cpu.
America used copyrights laws to crush its foreign competitor. Accusing UMC of stealing America tech and force UMC to sell all its tech to Intel.
Copyrights Law == Only america knows how to do it.
If you can do it, it means you are stealing america Tech.
No worries, Palestine and Iran will buy up all our semiconductors. We don’t need US.
What makes you feel the need to bring Palestine and Iran into this? What if the bumis use the same argument and claim this is their land by rights so non bumis should f off instead? I bet none of us are ready for that
actually im kinda worried this might turn into reality if pas rule our country.
then that makes the boomi similar to the zion. in fact malaysian “nakba” had already happen during limatigabelas
Wondering if the citizen of the United States will understand the tariff will increase end user not the seller or manufacturer haha
Build semiconductor plant inside USA runs fully robotic automated or hires Hispanics Puerto Rican as factory slaves?
Perhaps PMX will buy some more planes from the US.
semi finished product 100% tariff. finished product 19% tariff. by the logic of it its better for the 1st tier manufacturer performed all manufacturing in Malaysia itself.