Trump’s 100% Semiconductor Tariff Spurs Mixed Market Reaction on Techs

US President Trump announced a sweeping 100% tariff on semiconductor, targeting the imports from countries that are not investing in U.S. manufacturing. The move is part of aim for broader push to strengthen domestic chip production, according to Trump administration.

U.S. to Impose Sweeping Tariff on Foreign-Made Semiconductors

President Donald Trump has announced a 100% tariff on imported semiconductors, targeting companies that have not committed to investing in U.S.-based manufacturing. The policy marks a bold escalation in Trump’s push to revive American chipmaking and reduce dependency on foreign supply chains, especially from Asia.

The move was unveiled during a meeting with Apple CEO Tim Cook, emphasizing Washington’s strategy to use trade measures as leverage for reshoring high-tech industries.

Under the plan, exemptions will be granted to firms that are:

• Currently building U.S. chip manufacturing facilities, or
• Have formally committed to doing so, with follow-through required to avoid retroactive tariffs.

Major players like TSMC, Intel, Nvidia, and Apple—all with significant U.S. operations or expansion plans—are expected to be shielded from the punitive duties.

Mixed Market Reaction: Tech Stocks Rally, Chip Index Slips

The announcement drew a mixed response from markets:

• Apple surged ~5% intraday after reaffirming its $600B U.S. investment plan.
• Nvidia, Micron, GlobalFoundries and other U.S.-committed firms also gained, lifting the Nasdaq 100 Index to another strong session on Wednesday.
• However, the broader Philadelphia Semiconductor Index (SOX) slipped more than 1%, reflecting broader caution over global chip supply disruption and uncertainty about foreign producers’ next steps.

Taiwan, home to many leading semiconductor firms, faces elevated trade risks. China-aligned chipmakers, such as SMIC and Huawei, are seen as particularly vulnerable to these tariffs and could suffer from crippling export restrictions into the U.S.

NAS100, 4-H Chart | Source: Ultima Market MT5

The Nasdaq 100 extended its rebound following a brief post-NFP dip, regaining ground above the 23,000 key level.

The renewed strength reflects investor confidence that the recently announced U.S. semiconductor tariffs will not materially impact U.S.-based chipmakers, many of which already have domestic manufacturing footprints.

However, with the index now hovering near record highs, sentiment remains cautiously optimistic. Investors appear supportive of the policy direction, but concerns linger over potential retaliation or supply chain disruptions that could temper further upside.

Technically, the key support on 23,000 remains a focus level that could impact on investors sentiment.

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