Us tarifs plan on semiconductor: On behalf of US President Donald Trump, there is a fierce decisions about one tariff after another. After 25 percent tariff imposed on India, it has now been increased to 50 percent. However, for this increased rate, 20 days’ time has been given, while 25 percent tariff rates have been implemented from today.

Meanwhile, President Trump is now going to put 100 percent tariff on the chip. It is believed that this announcement of Trump can have a big impact on the semiconductor industry of the whole world. India will also not be untouched by this, because the semiconductor market of India is emerging very fast.

Why 100 percent tariff on chip?

In fact, due to buying oil from Russia, India was already imposed on 25 percent additional tariff. Now the US President has again stirred up the market by saying that they are going to put up up to 100 percent tariff on semiconductor chips.

Currently many countries are working in the semiconductor industry, but India is becoming increasingly a prominent player in this region. The government is trying to reduce dependence on other countries by promoting domestic manufacturing in this sector.

What will be the effect on India?

If President Trump really impose 100 percent tariff on chips, then it will affect Taiwan, Japan and China as well as India. A report claimed that in the next five years, India’s semiconductor market can reach 100 to 110 billion dollars. In the last three years, it has seen a tremendous rise. India’s chip market was about 23 billion dollars in 2022, which has reached more than $ 50 billion in FY 2025. Whereas, America’s chip market was $ 130 billion and China’s market was $ 177.8 billion.

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