According to a report by Bloomberg, President Trump has proposed imposing tariffs as high as 25% on imported semiconductors, sparking widespread opposition. Industries from automotive and boat manufacturing to technology and cryptocurrency have expressed concerns, fearing that this move could disrupt supply chains, increase costs, and weaken America's technological competitiveness. The U.S. Department of Commerce has received over 150 comments from businesses, industry groups, and foreign governments regarding this proposal, showing that opposition spans various sectors.

Semi-conductors are widely used in modern life, from refrigerators and microwaves to smart toilets and smartphones. Trump's intention is to reshape global supply chains and strengthen American manufacturing, but industry experts point out that domestic chip supply falls far short of demand, and imposing tariffs will only increase both production costs and final prices.

JoAnne Feeney, a partner at Advisors Capital Management, stated, "The number of chips used in the U.S. is severely imbalanced with domestic capacity; imposing taxes recklessly will only pass costs onto consumers." The boating industry association has also warned that tariffs would directly impact over 1,300 companies that rely on imported propulsion technologies, engines, and GPS devices, most of which have no American-made alternatives.

Both TSMC and Intel have submitted comments, supporting strengthened domestic chip manufacturing in the U.S. while urging the government to avoid heavy-handed taxation that could affect existing and future investment plans. TSMC noted it is undertaking a $165 billion investment in Arizona, covering six advanced wafer fabs, two packaging facilities, and one R&D center, which is expected to create thousands of jobs. However, if they face import tariffs on equipment, it will impact timelines and costs, potentially delaying U.S. supplies for AI, autonomous vehicles, and 5G chips.

Intel has expressed similar concerns, noting that if tariffs are imposed, other countries will likely retaliate, potentially harming American corporate products and exports. Intel has called for exemptions for overseas chips made with American technology and for manufacturing equipment like ASML's extreme ultraviolet lithography machines, which can cost up to $400 million and account for nearly two-thirds of new plant setup costs.

Major U.S. trading partners have also expressed dissatisfaction with the semiconductor tariffs. The Taiwanese government warned that imposing tariffs on semiconductor products exported from Taiwan would severely disrupt its ability to meet U.S. demand, increasing costs while undermining American profits and R&D investments. Taiwan produces about 90% of the world’s advanced chips, supplying major American design companies like NVIDIA and AMD. The Taiwanese government emphasized that tariffs would cause long-term harm to U.S. innovation.

Electric vehicle leader Tesla has also urged the government to coordinate with industry to minimize the impact of policy uncertainty on the supply chain. The company pointed out that global cooperation is the foundation for strengthening American manufacturing competitiveness, and that reckless tariffs could slow crucial transformations in the AI industry. A White House spokesperson emphasized that Trump remains committed to "bringing critical manufacturing back to national security" while awaiting the completion of a Section 232 investigation by the Commerce Department. However, various voices have clearly indicated that tariffs could have counterproductive effects on the overall economy and industrial ecosystem.