Us threatens 100 percent tariffs on memory chips

The United States government is considering imposing 100 percent tariffs on memory chips to encourage domestic manufacturing. This move could exacerbate the ongoing memory price hike crisis. Officials aim to persuade chip makers to build facilities in America.

The potential for steeper increases in memory prices looms as the US contemplates 100 percent tariffs on imported memory chips. According to reports, this policy would serve as a tool to push semiconductor companies toward establishing production in the United States.

The threat comes amid an existing crisis of rising memory costs, which has already impacted consumers and businesses. By levying such high duties, the government seeks to make overseas manufacturing less viable, thereby incentivizing 'build in America' strategies.

This development, highlighted in recent analyses, underscores broader efforts to bolster domestic tech supply chains. While specifics on implementation remain unclear, the proposal signals a aggressive stance on trade in critical components like memory chips.

Consumers may face higher prices for devices relying on these chips, from smartphones to computers. Industry watchers note that such tariffs could disrupt global supply dynamics without immediate alternatives.

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US official and Taiwanese executive shaking hands over semiconductor tariff deal document, with flags, chips, and tariff graphs in background.
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US official says Trump administration will seek separate semiconductor tariff deals

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The Trump administration will pursue separate semiconductor tariff agreements with individual countries, a US official said, following a deal with Taiwan this week. The agreement allows Taiwanese firms building US chip capacity to import materials tariff-free up to 2.5 times planned output during construction. South Korea's trade minister assessed the impact on local chipmakers as limited.

President Donald Trump has announced a 25% tariff on certain advanced AI chips from Nvidia and AMD, allowing their export to China while claiming a share of the sales revenue. The policy reverses a prior export ban on Nvidia's H200 chips but imposes the levy to fund US interests. Industry executives view it as a way to shield the arrangement from legal challenges.

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The South Korean government has convened an emergency meeting to assess the impact of U.S. President Donald Trump's proclamation imposing 25 percent tariffs on certain AI semiconductors, pledging all-out efforts to minimize effects on domestic industries. Trade Minister Yeo Han-koo has extended his stay in Washington to examine ramifications. Seoul is also preparing for a potential U.S. Supreme Court ruling against Trump's reciprocal tariffs.

Mexico's Senate has approved legislation imposing tariffs of up to 50 per cent on more than 1,400 products from Asian countries, primarily targeting Chinese imports to bolster domestic producers. President Claudia Sheinbaum defended the move, stating it supports the 'Plan Mexico' without harming the national economy. Beijing has criticised the duties as damaging to its interests.

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The U.S. Department of Commerce has decided to impose preliminary anti-dumping duties of up to 65.72 percent on certain chemical materials imported from South Korea. This ruling affects two Korean companies exporting monomers and oligomers to the United States. The investigation was initiated six months ago at the request of a U.S. chemical producer.

High-capacity DRAM prices are surging as demand from AI servers strains supply for personal computers. Average selling prices per gigabit rose sharply in late 2025. This trend is expected to push costs almost double by March 2026.

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Concerns are growing over Korean companies' operations in Mexico after the country approved tariff hikes of up to 50 percent on products from Asian nations without a free trade agreement. The measures affect machinery, auto parts, and electronic components, which make up about 30 percent of Korea's exports to Mexico. However, the industry ministry assessed that the impact will be limited due to Mexico's tariff reduction programs for intermediate goods.

 

 

 

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