On Saturday, the Trump administration said it would put in place 25% tariffs on Canada and Mexico and 10% tariffs on China, effective Tuesday. Early Monday, the administration said they are pausing plans for the 25% tariffs on Mexico for one month subject to more negotiations.

Though the United States is the global leader in designing chips, the vast majority of chip production happens overseas, particularly in U.S.-ally Taiwan.

President Donald Trump has threatened to impose tariffs on Taiwan-made chips, which could hit Nvidia, one of TSMC's biggest customers.