Trump plans tariffs on foreign PC chips, pharma; calls DeepSeek progress a 'wakeup call'

Donald Trump addresses House Republican members during their conference meeting at Trump National Doral resort in Miami, Florida, U.S. on January 27, 2025.

During his address to House Republicans on January 27 President Donald Trump reiterated his tariff threat and announced his intention to impose tariffs on foreign pharmaceuticals, chips, and metals soon.

President Trump told House Republicans in Miami that tariffs will soon be applied to foreign-made computer chips and pharmaceuticals to bring their production back to the United States. Trump declared his intention to enforce tariffs on steel along with aluminum and copper.

To bypass tariffs companies must establish operations in the United States according to Trump. You must establish your plant in the United States to avoid paying taxes and tariffs Trump explained.

President Trump has revealed his planned tariff war for the first time since his inauguration this month shortly after issuing tariff threats against Canada, Mexico and China.

On the same day that President Trump discussed semiconductor tariffs Wall Street experienced a massive sell-off caused by DeepSeek from China which erased billions off Nvidia's market capitalization.

Trump stated that DeepSeek AI's release by a Chinese company functions as an alert for us to intensify our focus to succeed in competition.

President Trump praised DeepSeek's technological advancement stating it was beneficial because it reduced costs.

The developments in China show one company has created AI methods which work faster and cost less money and this is advantageous because it reduces financial expenditure. Trump acknowledged this development as beneficial and an advantage to us.

Chinese leadership has acknowledged our scientists as the world's best. Trump added they told him that he possesses the world's most brilliant scientists.