Trump Floats 300% Tariff on Semiconductors

President Trump said he plans to impose tariffs on semiconductor imports in the coming weeks, expanding his tariff agenda to new sectors.

Economists note that revenue from tariffs is already being paid by consumers through higher prices.

“I’ll be setting tariffs next week and the week after on … chips — chips and semiconductors,” he said, Yahoo Finance reported.

Trump has already suggested tariffs around 100%, but on Friday he floated an even bigger figure. “I’m going to have a rate that is going to be 200%, 300%,” he said. The president also promised duties on pharmaceutical imports in the near future.

Meanwhile, tariffs are starting to register in the economic data. Wholesale inflation surged in July at its fastest pace in roughly three years, surprising market observers.

Until now, inflation data had shown little impact since Trump began rolling out sweeping duties in the spring.

But as the tariffs become more entrenched in the U.S. economy, economists expect more indicators to line up with this week’s Producer Price Index—perhaps most notably in next month’s Consumer Price Index.

So far, stock markets have remained unfazed. U.S. indices hit all-time highs this week as investors adapted.

New data also showed tariffs have generated billions in revenue, though economists note that part of that revenue is already being paid by consumers through higher prices.