Central Coast reacts to potential 100% tariffs on computer chips

A big shakeup could be coming for the economy of electronics.

President Trump promised to slap a whopping 100% tariff on computer chips.

American companies having to pay double price to import computer chips would have ripple effects on the electronics industry, from nationwide corporations like Best Buy to small business like Potter’s Electronics in Seaside.

“It is very concerning for us and for me personally, because so many of our products use these semiconductors and computer chips. It's not just the computers, it's in our daily electronics, like our cars. We sell them a lot in our store, which we don't sell computers, but we sell the switches and other products that do use those chips," said Liza Zoubkova of Potter's Electronics.

Trump made the announcement after meeting with Apple CEO Tim Cook.
Cook pledged to invest $500 billion into American manufacturing earlier this year. Wednesday, he and the president agreed on an additional $100 billion pledge.
As it stands, 90% of Apple’s iPhones are assembled in China.

“We'll be putting a tariff on of approximately 100% on chips and semiconductors, but if you're building in the united states of america, there's no charge even though you're building and you're not producing yet in terms of the big numbers of jobs and all of the things that you're building. If you're building, there will be no charge," said the president.

Last year, the US imported $60 billion worth of semiconductors, most of which coming from Taiwan and other Asian countries. The US only made around 12% of the world’s chips.

“I think there are major competitors that might be able to get their production up and running, but I don't think it would be at the scale that we would need to supply all of our needs for the new electronics and all the different products that would use them,” said Zoubkova.

The exact details of the plan are still unclear, meanwhile impacts of previous tariffs are still developing.

“I really don’t understand it, but I do understand prices are going up, on everything,” said Danny Fitzsimmons of Salinas.

He said he has a hard time reconciling the promises from his president with the prices his paying across the board.

“Every time he opens his mouth it’s a lie. I mean it’s proven time and again. He hasn’t done crap like he said he was gonna do.”

And some people who make a living selling electronics are crossing their fingers that the promise of sky-high tariff’s doesn’t turn into a reality.

“Hopefully they will reconsider and see just how much of an impact this will have on everyone. Not just consumers, but all of the manufacturing, because this will be difficult in general for our companies," said Zoubkova.

Details of the plan are expected to be laid out in an official announcement to come.