Trump slaps 100% tariff on semiconductors, but there's a catch

2025-08-07 general

washington, Thursday, 7 August 2025.
President Trump revealed a plan to impose a massive 100% tariff on semiconductor imports. However, companies like Apple and TSMC can avoid the levy by manufacturing in the United States. Apple pledged an additional $100 billion investment in its U.S. operations. This move sent Apple and TSMC stock prices soaring. The tariff aims to boost domestic chip production, incentivizing global firms to shift manufacturing to the U.S.

Market reaction and stock performance

Following the announcement, Apple’s stock price initially surged by 5.1% to $213.28 [2]. After-hours trading saw further gains, climbing nearly 3% [2]. TSMC’s American depositary receipts (ADR) experienced a volatile trading session before settling with a gain of approximately 2.9% [2]. Other semiconductor stocks showed mixed reactions; STMicroelectronics fell by 3%, ASML ADR decreased by over 0.16%, Nvidia increased slightly by 0.02%, Qualcomm declined by 0.6%, and GlobalFoundries rose by 1.6% [2]. These movements reflect the market’s immediate assessment of the tariff’s impact on various industry players [2].

Apple’s strategic investment

Apple’s commitment involves a $100 billion investment in U.S. manufacturing [1][2]. This investment aims to manufacture iPhone and Apple Watch glass covers entirely in the U.S. [2]. Apple plans to collaborate with companies like Corning, Applied Materials, and Texas Instruments [2]. Corning will build a new factory in Kentucky, increasing its local workforce by 50% [2]. This move accelerates Apple’s previous pledge to invest $500 billion over four years, bringing the total commitment to $600 billion [1][2]. The initiative is projected to create 1,000 new jobs annually [2].

Broader implications and concerns

The tariff strategy coincides with increasing pressure on international supply chains [2]. Trump also intends to impose a 50% tariff on goods from India, a key iPhone production hub [2]. Concerns remain about whether these investment plans will fully materialize [2]. Economists question the feasibility of fulfilling investment and job creation promises [2]. Despite Apple’s substantial investment, it might not achieve the complete relocation of production to the U.S. envisioned by the administration [2]. These factors introduce uncertainty for investors navigating the evolving trade landscape [GPT][alert! ‘Multiple sources suggest uncertainty, but no concrete data provided.’]

Trump’s tariff rationale and potential impacts

Trump’s decision comes amid broader trade actions, including potential tariffs on pharmaceuticals [4][5]. The proposed tariffs on drugs could reach as high as 250% [4][5]. These measures align with the administration’s goal to reshape global trade and encourage domestic production [5]. However, these tariffs could substantially increase costs for data center operators like Microsoft, OpenAI, Meta, and Amazon, which rely on advanced semiconductors for AI development [5]. The Semiconductor Industry Association reports over 130 projects totaling $600 billion have been announced in the U.S. since 2020 [1].

Bronnen

semiconductor tariff domestic manufacturing