Trump Hints at New Tariffs on Chips and Steel, Semiconductor Duties Could Soar to 300%

President Trump on Friday stated that he will be imposing tariffs on semiconductors in the coming couple of weeks as part of a larger strategy to apply his tariff policy to several sectors.

"I'll be putting tariffs next week and the week after on. chips — chips and semiconductors," he said to reporters on Friday.

Trump has earlier suggested that chip imports would attract tariffs of about 100%. On Friday, he hinted that the rate might be even higher. "I'm going to have a rate that is going to be 200%, 300%," he said.

The president also suggested that drug import duties are on the way soon.

Meanwhile, the effects of tariffs are starting to emerge in economic statistics. Wholesale inflation in July increased at its quickest rate in roughly three years, catching market analysts off guard.

Thus far, inflation numbers had evidenced little impact from the broad duties enacted in the spring. But as tariffs increasingly shape the US economy, economists expect future data—especially next month's Consumer Price Index—will more distinctly show their impact, mirroring this week's Producer Price Index report.

Stock markets, nonetheless, have been stubborn. US stock indexes set record highs this week as investors get used to the shifting trade environment. New figures also reveal that tariffs have brought in billions of dollars in revenue, though economists point out that some of this is through elevated prices for buyers.

On the diplomatic front, Trump issued an executive order extending the tariff ceasefire with China by 90 days, postponing trade talks until November. Presently, US average tariff rates on Chinese imports are around 55%, as per Bloomberg.

Weeks ago, Trump launched "reciprocal" tariffs on several US trading partners. Future talks will cover Canada, Mexico, and China in the coming months.

Legally, the tariffs are uncertain. A number of challenges are outstanding in US federal courts, with the most-watched case being considered by an appeals court in July. The court may either sustain or invalidate the duties at any moment.