Trump Chip Exemptions Lift Markets, Tech Giants Surge to Record Heights
Chip firms surge after Trump declares U.S. investors exempt from 100% tariff
Asian equities climbed Thursday, led by semiconductor giants, after President Donald Trump said firms building in the United States would be shielded from a threatened 100‑percent tariff on chips and semiconductors.
Key market moves
- TSMC (Taiwan) – shares jumped almost five percent early. Taiwan’s National Development Council chief Liu Chin‑ching said the firm was “in the clear” because its U.S. plants qualify for the exemption.
- Samsung (South Korea) – listings rose more than two percent as the company pours billions into the U.S. economy.
- SK hynix (South Korea) – also saw gains.
- Apple‑linked firms – Foxconn and Pegatron in Taipei progressed after Apple pledged an additional $100 billion U.S. investment, raising its total to $600 billion over four years.
- Tokyo Electron & Renesas (Japan) – both retraded.
Trump’s tariff announcement
Trump warned that a 100‑percent tariff would be imposed on chips and semiconductors, but added that companies building or committed to building in the U.S. would be exempt. He did not set a timetable for the tariff in his remarks.
Why the rally matters
Analysts at Morgan Stanley described the outcome as a “relief” for the chip sector. “100‑percent tariffs are unpalatable, but if companies are given time to restore them, the real tax is just the higher cost of building chips in the United States,” they said.
Broader tariff context
Trump’s statements came hours before his wide‑range “reciprocal” tariffs were to kick in against trading partners. He had also doubled his levy on India to 50 percent over Russian oil purchases and imposed a 50‑percent tariff on Brazil.
Asian markets react
Tokyo, Hong Kong, Shanghai, Singapore, Seoul and Wellington were all in the green, with Taipei leading the way on gains driven by TSMC. The rally followed a strong day on Wall Street, where Apple jumped more than five percent and Amazon piled on four percent.
Currency and commodity movement a snapshot
- Nikkei 225 – up 0.8 % at 41,114.68
- Hang Seng Index – up 0.3 % at 24,985.53
- Composite Shanghai – up 0.1 % at 3,636.23
- USD/JPY – up to 147.50 yen
- West Texas Intermediate – up 0.9 % at $64.93 per barrel
- Brent – up 0.9 % at $67.47 per barrel
With U.S. jobs data showing a slowdown and expectations of a Fed rate cut, traders remain alert to further developments in U.S. tariff policy and international diplomatic negotiations.
