President Trump unveiled a bold new trade policy, imposing a 100% tariff on all imported semiconductors and chips—unless the producing company is already manufacturing or committed to building production facilities in the United States. This measure is designed to incentivize domestic chip production and reduce reliance on foreign suppliers.
At the announcement, Apple CEO Tim Cook joined Trump in the Oval Office to unveil a $100 billion U.S. investment plan—further underscoring the administration’s push for onshore production.
The response in financial markets was immediate and telling:
- Apple shares surged over 5%, driven by investor optimism tied to the new domestic investment.
- TSMC stock climbed nearly 5%, while Samsung and GlobalFoundries also posted notable gains, thanks to their U.S. manufacturing ties.
- Conversely, SK Hynix stocks dipped amid uncertainty over how the tariff would affect chipmakers without U.S. operations.
Experts cautioned that while the policy may bolster U.S. production, it also carries risks—such as higher prices for tech goods, supply-chain disruptions, and potential retaliatory measures from foreign suppliers.