As President Donald Trump moves to overhaul the federal government with astonishing speed, he has wreaked havoc on one agency long known for its nonpartisanship and revered for its mission: the National Archives and Records Administration.

The independent agency and its trove of historic records have been the subject of Hollywood films and the foundation of research and policy. It also holds responsibilities in processes that are crucial for democracy, from amending the Constitution to electing a president. As the nation’s recordkeeper, the Archives tells the story of America — its founding, breakdowns, mistakes and triumphs.

Former employees of the agency now worry it’s becoming politicized.

Earlier this month, the Republican president abruptly fired the head archivist. Since then, several senior staffers at the Archives have quit or retired. An unknown number of staffers at the agency also have accepted government-offered deferred resignations, often known as buyouts, or been fired because of their probationary status.

Everything that happens in the government, domestically and internationally, generates records. The National Archives is their final landing spot.

Among those are the nation’s precious founding documents, including the original Constitution and Declaration of Independence. The collection also includes military personnel files that allow veterans to get benefits, employment and tax records, maps, drawings, photographs, electronic records and more.

The archivist of the United States is the steward of those billions of records, which belong to the American people, said James Grossman, executive director of the American Historical Association.

Besides its museum in Washington, the agency manages field offices and presidential libraries around the country. It also authenticates and certifies new constitutional amendments and houses the Office of the Federal Register, which, among other things, verifies electoral certificates during presidential elections.

The president didn’t give a public reason for firing archivist Colleen Shogan, but he has long held a grudge against the agency for notifying the Justice Department of his alleged mishandling of classified documents after he left office following his first term.

That 2022 referral led to an FBI search of his Mar-a-Lago estate in Palm Beach, Florida, and a federal indictment against him. A federal judge dismissed the case last year.

Shogan wasn’t working for the agency at the time. Still, Trump fired her abruptly on Feb. 7 without giving her a reason, she said in a social media post.

The Society of American Archivists said its leadership was alarmed by the news and said the firing with no stated cause “does harm to our nation and its people.”

The president is allowed to dismiss the head of the agency, but none has done so quite as brazenly as Trump. The closest historical precedent was in 2004, when archivist John Carlin resigned and revealed in a letter to a U.S. senator that he had been asked to do so by President George W. Bush’s Republican White House.

The president is required by law to notify Congress of the reasons for the firing, but he isn’t bound to any timeline. House and Senate leaders didn’t respond to The Associated Press’ inquiries about whether Trump had shared that information. The Senate committee that has appropriations jurisdiction over the Archives was not told of Shogan’s firing beforehand, nor has it been told of any replacement, a congressional staff member said.

In a federal courtroom Monday afternoon, a significant legal battle unfolded as The Associated Press (AP) pressed its case against three staff members of President Donald Trump's administration. The news agency is seeking to reverse the Trump administration’s decision to bar AP journalists from attending presidential events, including access to the Oval Office, Air Force One, and other areas traditionally part of the White House press pool.

The crux of the dispute lies in the AP's refusal to adopt President Trump's renaming of the Gulf of Mexico to the "Gulf of America." The AP insists on using the traditional "Gulf of Mexico" terminology, explaining that its audience is global and that the body of water extends beyond U.S. territory. Nonetheless, the news agency has acknowledged Trump's renaming, emphasizing its stance as a matter of journalistic integrity and global relevance.

At the heart of the AP’s argument is a violation of the First Amendment of the U.S. Constitution, which safeguards freedom of speech. The White House, on the other hand, contends that access to the president is a privilege, not a right. Trump himself told reporters just last week, "We're going to keep them out until such time as they agree that it's the Gulf of America."

AP’s legal team claims that the ban, which appears to have originated directly from President Trump, is an infringement on their First Amendment rights. Gabe Rottman, a senior attorney for the Reporters Committee for Freedom of the Press, who submitted a friend-of-the-court brief in support of the AP, described the situation as "viewpoint discrimination." He further emphasized that this type of discrimination is particularly prohibited under the First Amendment, calling it “poison to a free society."

Judge McFadden, who presided over the hearing, expressed significant concern, raising several questions that pointed to the fact that the ban could indeed be seen as an infringement on freedom of speech, making the case a landmark one for press freedom.

Billionaire Trump adviser Elon Musk violated the law with his weekend demand that federal employees explain their accomplishments or risk being fired, attorneys for the workers said Monday in a lawsuit.

The updated lawsuit, which was filed in federal court in California and was provided to The Associated Press, is trying to block mass layoffs pursued by Musk and President Donald Trump, including any connected to the email distributed by the Office of Personnel Management on Saturday. The office, which functions as a human resources agency for the federal government, said employees needed to detail five things they did last week by end of day on Monday.

“No OPM rule, regulation, policy, or program has ever, in United States history, purported to require all federal workers to submit reports to OPM,” said the amended complaint, which was filed on behalf of unions, businesses veterans, and conservation organizations represented by the group State Democracy Defenders Fund. It called the threat of mass firings “one of the most massive employment frauds in the history of this country.”

Musk, who’s leading the Republican president’s efforts to overhaul and downsize the federal government, continued to threaten federal workers Monday even as confusion spread through the administration and some top officials told employees not to comply.

“Those who do not take this email seriously will soon be furthering their career elsewhere,” Musk posted on X, his social media platform.

He also escalated Trump’s demand for employees to stop working remotely, saying those who fail to return to the office will be placed on administrative leave.

The latest round of turmoil began over the weekend, when Trump posted on his social media website: “ELON IS DOING A GREAT JOB, BUT I WOULD LIKE TO SEE HIM GET MORE AGGRESSIVE.”

Musk followed by saying “all federal employees will shortly receive an email requesting to understand what they got done last week.” He claimed “failure to respond will be taken as a resignation.” The directive echoed how the entrepreneur has managed his own companies.

The Office of Personnel Management sent out its own request afterward.

“Please reply to this email with approx. 5 bullets of what you accomplished last week and cc your manager,” the message said. However, it said nothing about the potential for employees being fired for noncompliance. The deadline was listed as 11:59 p.m. EST Monday.

There was swift resistance from several key U.S. agencies led by the president’s loyalists — including the FBI, the State Department, Homeland Security and the Pentagon — which instructed their employees over the weekend not to respond. Lawmakers in both major political parties said Musk’s mandate may be illegal, while unions threatened to sue.

One message Sunday morning from the Department of Health and Human Services, led by Robert F. Kennedy Jr., instructed its 80,000 employees to comply. That was shortly after the acting general counsel, Sean Keveney, had instructed some not to. And by Sunday evening, agency leadership issued new instructions that employees should “pause activities” related to the request until noon Monday.

Defense Secretary Pete Hegseth insists President Donald Trump ’s abrupt firing of the nation’s senior military officer amid a wave of dismissals at the Pentagon wasn’t unusual, brushing aside outcry that the new administration is openly seeking to inject politics into the military. He also suggested more firings could come.

“Nothing about this is unprecedented,” Hegseth told “Fox News Sunday” about Air Force Gen. CQ Brown Jr. being removed Friday night as chairman of the Joint Chiefs of Staff. “The president deserves to pick his key national security advisory team.”

Hegseth said “there are lots of presidents who made changes” citing former commanders in chief from Franklin D. Roosevelt to George H.W. Bush to Barack Obama, who the defense secretary said “fired or dismissed hundreds” of military officials.

Months into his first term, Obama relieved Army Gen. David McKiernan as the commander of U.S. forces in Afghanistan. Trump, however, vowed while running for his second term to eradicate “woke” ideologies from the military and moving swiftly to dismiss so many top leaders means keeping a campaign promise.

Hegeseth and Trump have made no secret about focusing on pushing aside military officers who have supported diversity, equity and inclusion in the ranks. The administration says its is on better fortifying a lethal fighting force.

Brown was just the second Black general to serve as chairman. His 16 months in the post were consumed with the war in Ukraine and the expanded conflict in the Middle East. Trump in 2020 nominated Brown as Air Force’s chief of staff.

Trump wants to replace Brown Air Force Lt. Gen. Dan “Razin” Caine, who retired in December. It is unclear what recalling Caine to active-duty service will require. The position requires Caine to be confirmed by the Senate.

Hegseth said Friday’s dismissals affected six three- and four-star generals and were “a reflection of the president wanting the right people around him to execute the national security approach we want to take.”

He called Brown “honorable” but said he is “not the right man for the moment,” without citing specific deficiencies. After the 2020 murder of George Floyd, Brown in a video spoke of his experience as a Black pilot, apparently making him fodder for the Trump administration’s wars against inclusion initiatives in the military.

Of Caine, the Defense secretary said that Trump “respects leaders who untie the hands of war fighters in a very dangerous world.”

Retired Gen. George Casey, commander of U.S. and multinational forces in Iraq from 2004 to 2007 under Republican President George W. Bush, called the firings “extremely destabilizing.” He also noted that the Trump administration can change Pentagon policy without changing personnel, but added, that what happened is “”within the president’s prerogative.”

“That’s his prerogative,” Casey told ABC’s “This Week.” “He is the commander in chief of the armed forces.”

Still, Sen. Jack Reed of Rhode Island, the ranking Democrat on the Senate Armed Services Committee told ABC that the firings were “completely unjustified” and that “apparently, what Trump and Hegseth are trying to do is to politicize the Department of Defense.”

Hegseth was also asked on Fox News about officials potentially compiling lists of more defense officials they plan to fire. He said there was no list but suggested that more dismissals could indeed be coming.

Hundreds of thousands of federal workers have been given little more than 48 hours to explain what they accomplished over the last week, sparking confusion across key agencies as billionaire Elon Musk expands his crusade to slash the size of federal government.

Musk, who serves as President Donald Trump’s cost-cutting chief, telegraphed the extraordinary request on his social media network on Saturday.

“Consistent with President @realDonaldTrump’s instructions, all federal employees will shortly receive an email requesting to understand what they got done last week,” Musk posted on X, which he owns. “Failure to respond will be taken as a resignation.”

Shortly afterward, federal employees — including some judges, court staff and federal prison officials — received a three-line email with this instruction: “Please reply to this email with approx. 5 bullets of what you accomplished last week and cc your manager.”

The deadline to reply was listed as Monday at 11:59 p.m., although the email did not include Musk’s social media threat about those who fail to respond.

The latest unusual directive from Musk’s team injects a new sense of chaos across beleaguered multiple agencies, including the National Weather Service, the State Department and the federal court system, as senior officials worked to verify the message’s authenticity Saturday night and in some cases, instructed their employees not to respond.

Thousands of government employees have already been forced out of the federal workforce — either by being fired or offered a buyout — during the first month of Trump’s administration as the White House and Musk’s so-called Department of Government Efficiency fire both new and career workers, tell agency leaders to plan for “large-scale reductions in force” and freeze trillions of dollars in federal grant funds.

There is no official figure available for the total firings or layoffs so far, but The Associated Press has tallied hundreds of thousands of workers who are being affected. Many work outside of Washington. The cuts include thousands at the Departments of Veterans Affairs, Defense, Health and Human Services, the Internal Revenue Service and the National Parks Service, among others.

Labor union leaders quickly condemned the ultimatum and threatened legal action.

AFGE President Everett Kelley called the new order an example of Trump and Musk’s “utter disdain for federal employees and the critical services they provide to the American people.”

“It is cruel and disrespectful to hundreds of thousands of veterans who are wearing their second uniform in the civil service to be forced to justify their job duties to this out-of-touch, privileged, unelected billionaire who has never performed one single hour of honest public service in his life,” Kelley said. “AFGE will challenge any unlawful terminations of our members and federal employees across the country.”

Musk on Friday celebrated his new role at a gathering of conservatives by waving a giant chainsaw in the air. He called it “the chainsaw for bureaucracy” and said, “Waste is pretty much everywhere” in the federal government.

McLaurine Pinover, a spokesperson at the Office of Personnel Management, confirmed Musk’s directive and said that individual agencies would “determine any next steps.”

What happens if an employee is on leave or vacation? Again, she said individual agencies would determine how to proceed.

In a message to employees on Saturday night, federal court officials instructed recipients not to respond.

“We understand that some judges and judiciary staff have received an email ... directing the recipient to reply with 5 accomplishments from the prior week. Please be advised that this email did not originate from the Judiciary or the Administrative Office and we suggest that no action be taken,” officials wrote.

Judges around the country got emails from Musk’s team in late January, apparently by mistake, U.S. District Judge Randolph Daniel Moss said earlier this month. Moss said he’d also gotten a message and ignored it.

The National Weather Service leadership acknowledged some confusion in a message to its employees late Saturday as well.

The chief justice of the Michigan Supreme Court announced Wednesday that she is stepping down from the court by the end of April, opening the door for the court to have a 6-1 majority of Democratic-backed justices.

Elizabeth Clement did not give a reason for her upcoming resignation.

“Leading our state’s highest court has been an opportunity to continue a proud record of independence, fairness, and commitment to the rule of law,” Clement said in a statement. “I am thankful to my colleagues for their support and friendship, as well as for their willingness to seek common ground in serving the people of Michigan.”

Michigan’s justices are technically nonpartisan, but they are nominated by parties or appointed by the governor in the case of a vacancy. The court currently has a 5-2 majority of justices backed by Democrats after picking up a seat in the November election.

Democratic Gov. Gretchen Whitmer has the opportunity to appoint a justice to fill Clement’s vacancy and create a 6-1 majority of Democratic-backed justices. Whoever fills the vacancy must run for retention in 2026 for a full eight-year term.

Clement was appointed to the Michigan Supreme Court in 2017 by Republican Gov. Rick Snyder. She secured a full term in the 2018 general election and her term was set to end in 2026. In November 2022, she was chosen to serve as Chief Justice.

“Going forward, my plan is to continue working to find ways to bring people together, to put data to work, and to make a difference in the lives of people so that interactions with our justice system result in safer communities and stronger families,” Clement said in the statement released by the court.

The Senate was set to vote Thursday on whether to confirm Kash Patel as FBI director, a decision that could place him atop the nation’s premier federal law enforcement agency despite concerns from Democrats over his qualifications and the prospect that he would do President Donald Trump’s bidding.

Patel cleared the Senate Judiciary Committee last week by a 12-10, party-line vote and is set for consideration by the Republican-controlled Senate on Thursday afternoon.

He is expected to be confirmed unless more than three Republican senators defy Trump’s will and vote against him, which is seen as unlikely. Trump has already secured approval for most of his nominees despite initial Republican skepticism to several of his choices.

Patel, a Trump loyalist who has fiercely criticized the agency that he is poised to lead, would inherit an FBI gripped by turmoil. The Justice Department in the last month has forced out a group of senior FBI officials and made a highly unusual demand for the names of thousands of agents who particip

Trump has said that he expects some of those agents will be fired.

Republicans angry over what they see as law enforcement bias against conservatives during the Biden administration, as well as criminal investigations into Trump, have rallied behind Patel as the right person for the job. Democrats, meanwhile, have complained about his lack of management experience compared to others who have held the director’s job and highlighted incendiary past statements that they say call his judgment into question.

“My prediction is if you vote for Kash Patel, more than any other confirmation vote you make, you will come to regret this one to your grave,” Democratic Sen. Chris Murphy of Connecticut said this week.

Patel’s eyebrow-raising remarks on hundreds of podcasts over the last four years include referring to law enforcement officials who investigated Trump as “criminal gangsters,” referring to some Jan. 6 rioters as “political prisoners” and pledging to “come after” anti-Trump “conspirators” in the government and media.

At his confirmation hearing last month, Patel said Democrats were taking some of his comments out of context or misunderstanding the broader point that he was trying to make, such as when he proposed shutting down the FBI headquarters in Washington and turning it into a museum for the so-called deep state. And Patel denied the idea that a list in his book of government officials who he said were part of a “deep state” amounted to an “enemies list,” calling that a “total mischaracterization.”

FBI directors are given 10-year terms as a way to insulate them from political influence and keep them from becoming beholden to a particular president or administration. Patel was selected in November to replace Christopher Wray, who was picked by Trump in 2017 and served for more than seven years but who repeatedly angered the president and was seen by him as insufficiently loyal. He resigned before Trump took office.

A former federal defender and Justice Department counterterrorism prosecutor, Patel attracted Trump’s attention during his first term when, as a staffer on the Republican-led House Intelligence Committee, he helped author a memo with pointed criticism of the FBI’s investigation into ties between Russia and Trump’s 2016 campaign.

Troubled electric vehicle maker Nikola has filed for Chapter 11 bankruptcy protection months after saying that it would likely run out of cash early this year.

Nikola was a hot start-up and rising star on Wall Street before becoming enmeshed in scandal and its founder was convicted in 2022 for misleading investors about the Arizona company’s technology.

At the trial of founder Trevor Milton, prosecutors say a company video of a prototype truck appearing to be driven down a desert highway was actually a video of a nonfunctioning Nikola that had been rolled down a hill.

But the hype around the company was immense. In 2020, Nikola was valued at around $30 billion, exceeding the market capitalization of Ford Motor Co.

Nikola filed for protection in the United States Bankruptcy Court for the District of Delaware and said Wednesday that it has also filed a motion seeking approval to pursue an auction and sale of the business.

The company has about $47 million in cash on hand. rolled

Nikola Corp. plans to to continue limited service and support operations for vehicles on the road, including fueling operations through the end of March, subject to court approval. The company said that it will need to raise more funding to support those types of activities after that time.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” CEO Steve Girsky said in a statement.

The executive said the company has made efforts in recent months to raise funds and reduce liabilities and preserve cash, but that it hasn’t been enough.

“The Board has determined that Chapter 11 represents the best possible path forward under the circumstances,” Girsky said.

In December 2023 founder Trevor Milton was sentenced to four years in prison after being convicted of exaggerating claims about his company’s production of zero-emission 18-wheel trucks, leading to sizeable losses for investors.

Milton was convicted of fraud charges, portrayed by prosecutors as a con man six years after he had founded the company in a basement in Utah.

Prosecutors said Milton falsely claimed to have built its own revolutionary truck that was actually a General Motors product with Nikola’s logo stamped onto it.

Called as a government witness, Nikola’s CEO testified that Milton “was prone to exaggeration” when pitching his venture to investors.

Milton resigned in 2020 amid reports of fraud that sent Nikola’s stock prices into a tailspin. Investors suffered heavy losses as reports questioned Milton’s claims that the company had already produced zero-emission 18-wheel trucks.

The company paid $125 million in 2021 to settle a civil case against it by the SEC. Nikola didn’t admit any wrongdoing.

The Trump administration has begun firing several hundred Federal Aviation Administration employees, upending staff on a busy air travel weekend and just weeks after a January fatal midair collision at Ronald Reagan Washington National Airport.

Probationary workers were targeted in late-night emails Friday notifying them they had been fired, David Spero, president of the Professional Aviation Safety Specialists union, said in a statement.

The impacted workers include personnel hired for FAA radar, landing and navigational aid maintenance, one air traffic controller told The Associated Press. The air traffic controller was not authorized to talk to the media and spoke on condition of anonymity.

In a message posted to X late Monday, Transportation Secretary Sean Duffy said fewer than 400 FAA employees were fired and “Zero air traffic controllers and critical safety personnel were let go.”

A Transportation Department official told the AP earlier Monday that the agency has “retained employees who perform critical safety functions.” In a follow-up query the agency said they would have to look into whether the radar, landing and navigational aid workers affected were considered to handle critical safety functions.

The National Air Traffic Controllers Association said in a brief statement Monday it was “analyzing the effect of the reported federal employee terminations on aviation safety, the national airspace system and our members.”

Other FAA employees who were fired were working on an urgent and classified early warning radar system the Air Force had announced in 2023 for Hawaii to detect incoming cruise missiles, through a program that was in part funded by the Defense Department. It’s one of several programs that the FAA’s National Airspace System Defense Program manages that involve radars providing longer-range detection around the country’s borders.

Due to the nature of their work, staff in that office typically provide an extensive knowledge transfer before retiring to make sure no institutional knowledge is lost, said Charles Spitzer-Stadtlander, one of the employees in that branch who was terminated.

The Hawaii radar and the FAA defense program office working on it are “about protecting national security,” Spitzer-Stadtlander said. “I don’t think they even knew what NDP does, they just thought, oh no big deal, he just works for the FAA.”

“This is about protecting national security, and I’m scared to death,” Spitzer-Stadtlander said. “And the American public should be scared too.”

Spero said messages began arriving after 7 p.m. Friday and continued late into the night. More might be notified over the long weekend or barred from entering FAA buildings Tuesday, he said.

The firings hit the FAA as it is facing a shortfall in controllers. Federal officials have been raising concerns about an overtaxed and understaffed air traffic control system for years, especially after a series of close calls between planes at U.S. airports. Among the reasons they have cited for staffing shortages are uncompetitive pay, long shifts, intensive training and mandatory retirements.

In the Jan. 29 fatal crash between a U.S. Army Black Hawk helicopter and American Airlines passenger jet, which is still under investigation, one controller was handing both commercial airline and helicopter traffic at the busy airport.

Just days before the collision, President Donald Trump had already fired all the members of the Aviation Security Advisory Committee, a panel mandated by Congress after the 1988 PanAm 103 bombing over Lockerbie, Scotland. The committee is charged with examining safety issues at airlines and airports.

Spitzer-Stadtlander suggested he was targeted for firing for his views on Tesla and X, formerly Twitter, not as part of a general probationary-level sweep. Both companies are owned by Elon Musk, whose Department of Government Efficiency is leading Trump’s effort to cut the federal government.

Spitzer-Stadtlander is Jewish and was angered by Musk’s straight-arm gesture at Trump’s inauguration. On his personal Facebook page he urged friends to get rid of their Teslas and X accounts in response.

Spitzer-Stadtlander said that post drew the attention of a Facebook account labeled “Department of Government Efficiency,” which reacted with a laughing emoji. Soon after, he saw the same account reacting to much older posts through his personal Facebook feed.

However, the added complexity of the trade war sparked by U.S. tariffs on steel and aluminum poses a fresh challenge. For Ukraine, which heavily depends on its steel industry, this could further destabilize an already fragile economy. The 25% tariffs introduced by President Trump could lead to decreased exports, exacerbating the economic strain caused by the war. In addition, Trump's recent outreach to Putin and comments about potentially meeting with him in person, coupled with dismissals of NATO membership for Ukraine, raise concerns in Kyiv about the future of U.S. support.

These developments underscore how deeply interconnected geopolitics, military conflict, and global trade are in shaping the survival of Ukraine's key industries. The factory’s workers, like many others in the region, are caught in the crossfire of these broader international shifts, and their resilience will be critical in navigating both the physical and economic battles ahead.

Even as he’s vowed to push the United States ahead in artificial intelligence research, President Donald Trump’s threats to alter federal government contracts with chipmakers and slap new tariffs on the semiconductor industry may put new speed bumps in front of the tech industry.

Since taking office, Trump has said he would place tariffs on foreign production of computer chips and semiconductors in order to return chip manufacturing to the U.S. The president and Republican lawmakers have also threatened to end the CHIPS and Science Act, a sweeping Biden administration-era law that also sought to boost domestic production.

But economic experts have warned that Trump’s dual-pronged approach could slow, or potentially harm, the administration’s goal of ensuring that the U.S. maintains a competitive edge in artificial intelligence research.

Saikat Chaudhuri, an expert on corporate growth and innovation at U.C. Berkeley’s Haas School of Business, called Trump’s derision of the CHIPS Act surprising because one of the biggest bottlenecks for the advancement of AI has been chip production. Most countries, Chaudhuri said, are trying to encourage chip production and the import of chips at favorable rates.

“We have seen what the shortage has done in everything from AI to even cars,” he said. “In the pandemic, cars had to do with fewer or less powerful chips in order to just deal with the supply constraints.”

The Biden administration helped shepherd in the law following supply disruptions that occurred after the start of the COVID-19 pandemic — when a shortage of chips stalled factory assembly lines and fueled inflation — threatened to plunge the U.S. economy into recession. When pushing for the investment, lawmakers also said they were concerned about efforts by China to control Taiwan, which accounts for more than 90% of advanced computer chip production.

As of August 2024, the CHIPS and Science Act had provided $30 billion in support for 23 projects in 15 states that would add 115,000 manufacturing and construction jobs, according to the Commerce Department. That funding helped to draw in private capital and would enable the U.S. to produce 30% of the world’s most advanced computer chips, up from 0% when the Biden-Harris administration succeeded Trump’s first term.

The administration promised tens of billions of dollars to support the construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness. In August, the Commerce Department pledged to provide up to $6.6 billion so that Taiwan Semiconductor Manufacturing Co. could expand the facilities it is already building in Arizona and better ensure that the most advanced microchips are produced domestically for the first time.

But Trump has said he believes that companies entering into those contracts with the federal government, such as TSMC, “didn’t need money” in order to prioritize chipmaking in the U.S.

“They needed an incentive. And the incentive is going to be they’re not going to want to pay at 25, 50 or even 100% tax,” Trump said. TSMC held board meetings for the first time in the U.S. last week. Trump has signaled that if companies want to avoid tariffs they have to build their plants in the U.S. — without help from the government. Taiwan also dispatched two senior economic affairs officials to Washington to meet with the Trump administration in a bid to potentially fend off a 100% tariff Trump has threatened to impose on chips.

If the Trump administration does levy tariffs, Chaudhuri said, one immediate concern is that prices of goods that use semiconductors and chips will rise because the higher costs associated with tariffs are typically passed to consumers.