trump targets semiconductors: tariffs incoming?

2025-08-05 general

Washington, Tuesday, 5 August 2025.
President Trump’s announcement of potential semiconductor tariffs as soon as next week has sent ripples through global markets. These tariffs could reach as high as 250% on pharmaceuticals. The move creates considerable uncertainty. It may impact semiconductor company revenues and stock valuations. The tariffs on semiconductors are especially concerning. Taiwan produces a majority of the world’s advanced chips. These chips are vital for smartphones and AI. This action could further strain relations between the US and key trading partners, particularly in Asia.

market reaction and analysis

The announcement triggered immediate market volatility [5]. Stock indices in Taiwan and South Korea experienced declines last Friday, reflecting investor concerns about the potential impact on major tech manufacturers [5]. Companies like Apple and Nvidia, which rely on Asian suppliers for critical components, may face higher supply chain costs [5]. Apple’s CEO Tim Cook stated that tariffs had already cost the company $800 million in the previous quarter, with potential additional costs of $1.1 billion in the next [5]. This unpredictability complicates long-term planning for tech firms [5].

taiwan’s response and us relations

Taiwan’s officials are attempting to mitigate the impact of potential tariffs [3]. Taiwan’s representatives have been in Washington for weeks seeking a trade agreement, but have not reached a deal similar to those with Japan and South Korea [3][6]. Taiwan’s government acknowledges the ongoing negotiations, but emphasizes the progress being made [3]. Taiwan has also expressed interest in purchasing natural gas from Alaska and has encouraged investment from TSMC, a major chip manufacturer, to expand its operations in the U.S. [3]. TSMC’s investment in the U.S. is around $100 billion [3].

impact on global trade dynamics

Trump’s policies extend beyond targeting specific nations, aiming to reshape global trade [7]. The administration is increasing tariffs on goods that are transshipped through other countries to avoid duties, with a 40% tariff on such goods [7]. This measure is designed to limit China’s role in global supply chains, potentially affecting ongoing trade negotiations between the U.S. and China [7]. These changes add complexity and uncertainty for businesses navigating international trade [7].

potential winners and losers

The long-term effects of these tariffs remain uncertain. Some analysts suggest that no one truly wins in a deeply globalized world, as U.S. businesses and consumers may also suffer [5]. While Trump aims to bring jobs and manufacturing back to the U.S., the increased costs and disrupted supply chains could negatively impact various sectors [5]. The situation is fluid, and the actual outcomes will depend on how these policies are implemented and how other nations respond [5][7].

Bronnen

semiconductor tariffs trade policy