semiconductor stocks brace for potential us trade shakeup
Washington, Thursday, 19 June 2025.
The United States is considering new technical trade barriers. These barriers could impact the semiconductor industry. Companies like NVIDIA, ASML, and TSMC may face challenges. These challenges include higher costs and supply chain issues. The Business Software Alliance (BSA) highlighted these potential barriers in their 2025 National Trade Estimate comments. The EU dedicates seventeen pages to technical barriers compared to two pages on tariffs. These barriers, including standards and certifications, are becoming a key battleground in global trade.
Technical barriers on the rise
Technical Barriers to Trade (TBTs) are non-tariff barriers that include standards, certifications, and conformity assessments [1]. These barriers are increasingly important in the global economy [1]. The U.S. sees its tariff strategy as a response to restrictive non-tariff measures [1]. These measures are imposed by economies like the European Union and China [1]. TBTs have evolved into strategic tools [1]. They have moved beyond simple safety checks [1]. The World Trade Organization (WTO) attempts to reduce these barriers through the TBT Agreement, but rising geopolitical tensions are challenging the WTO’s influence [1].
us trade strategy and semiconductor impact
The U.S. generally uses a flexible approach to technical regulations [1]. China, however, uses technical standards as an industrial policy tool [1]. China’s tactics include mandatory national standards and complex product certifications [1]. Data localization requirements also play a role, along with selective enforcement of environmental or safety regulations [1]. These differing approaches create friction in international trade. The U.S. National Trade Estimate Report on Foreign Trade Barriers details these issues [1]. The 2025 report dedicates seventeen pages to EU technical barriers, while only two pages address tariffs [1].
implications for semiconductor companies
Increased trade restrictions could lead to higher costs for semiconductor companies [GPT]. Supply chain disruptions may also occur [GPT]. Reduced market access could further harm these companies [GPT]. These factors can influence stock performance and investment decisions [GPT]. Companies like NVIDIA, ASML, and TSMC are particularly vulnerable [GPT]. Investors should monitor these developments closely. The Business Software Alliance (BSA) submitted comments regarding trade barriers [2]. BSA’s comments were for inclusion in the National Trade Estimate Report [2].
korea and china address trade hurdles
South Korea and China held their ninth FTA Technical Barriers to Trade Committee meeting in Beijing on June 18 [3][4]. The meeting focused on ways to eliminate technical trade barriers between the two countries [3][4]. Korean officials raised concerns about registration processes for cosmetics and medical devices in China [3][4]. They also sought information on China’s product carbon footprint labeling pilot program launched last year [3][4]. This committee aims to reduce trade barriers and promote trade facilitation [3][4]. The committee is a director-general-level consultation mechanism [3][4].