President Donald Trump said Wednesday he plans to place a 100% tariff on computer chip imports, a move that could raise the prices Americans pay for computers, cars, appliances and other electronics.

The tariffs would not apply to computer chips made in the U.S., President Trump said, ostensibly making the move an attempt to increase domestic production of chips.

But the U.S.-based Semiconductor Industry Association, a trade group representing U.S. chip manufacturers, estimates that U.S. manufacturing accounts for only 12% of computer chips produced globally.

The U.S. International Trade Commission estimates the U.S. imported more than $591 billion in electronic products in 2023, the last year for which data is available. The category counts a wide range of goods, including computers, telecommunications equipment, semiconductors and integrated circuits.

Computer chips are also a key component of modern vehicles and many appliances, such as televisions, refrigerators and washing machines.

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The tariff announcement comes the same day that Apple CEO Tim Cook joined President Trump at the White House to announce a commitment to increase Apple's investment in U.S. manufacturing by an additional $100 billion over the next four years.

The investment will bring more of Apple's supply chain and advanced manufacturing to the United States, but it is not a full commitment to build its popular iPhone device domestically.

President Trump has not indicated when the proposed chip tariff would go into effect.