Dubai — A proposed move by U.S. President Donald Trump to impose up to 100% tariffs on imported semiconductors is raising concerns of global price hikes across electronics—from smartphones and laptops to cars and home appliances.
The announcement, made during a meeting with tech executives including Apple’s Tim Cook and Nvidia’s Jensen Huang, aims to penalize foreign-made chips while exempting domestic U.S. production.
“If you’re building in the United States, there’s no charge,” Trump stated. “But foreign-made chips will face tariffs of up to 100%.”
Though chipmakers with U.S.-based facilities—such as TSMC, Samsung, and SK Hynix—may be spared, most electronics are still assembled in Asia using components sourced globally. Even American brands like Apple rely heavily on foreign chips, making them vulnerable to rising costs unless they overhaul their supply chains.
Ripple Effects for UAE Consumers
While the UAE is not a direct semiconductor exporter to the U.S., the global nature of electronics supply chains means that local markets could still feel the impact. As chip costs rise, so too could the prices of imported electronics, affecting retailers and consumers across the Gulf.
“Higher component costs often cascade down to end products,” said a Dubai-based electronics distributor. “This can impact the cost of goods in retail outlets across the region.”
With the UAE serving as a key global trade and re-export hub, disruptions in global semiconductor flows could affect pricing and availability throughout the broader Gulf and MENA region.
Policy Shift Raises Broader Economic Questions
Trump’s tariff plan marks a departure from earlier strategies that focused on incentivizing domestic production through the CHIPS Act. Critics argue that tariffs could inflate consumer prices without resolving short-term supply gaps, as chip fabrication facilities require years to build and billions in investment.
The global semiconductor market has grown nearly 20% year-on-year through June, underlining the critical role chips play in modern electronics manufacturing.
