What are semiconductors and why is Trump threatening 100% tariffs?

The article discusses the ongoing trade tensions surrounding semiconductors, a critical component in various electronic devices. President Trump has threatened to impose a 100% tariff on foreign-made semiconductor chips, citing national security concerns and the need to protect the domestic semiconductor industry. Semiconductors are essential for the functioning of various electronic products, from smartphones and computers to cars and military equipment. The largest producers of semiconductors are based outside the United States, primarily in countries like Taiwan, South Korea, and China. The article highlights that while the proposed tariffs could have a significant impact on the prices of consumer electronics, the largest semiconductor manufacturers may be able to avoid the levy. This is due to the complex supply chain and the potential for these companies to shift production or find alternative sourcing options. The article emphasizes the strategic importance of semiconductors and the ongoing global competition to maintain a strong domestic semiconductor industry, which is seen as crucial for national security and technological leadership.