New tariff threat to ensure the chips fall to US

US President Donald Trump said on Wednesday that the United States will impose a tariff of about 100 percent on imports of semiconductors, but he offered a big exemption — it will not apply to companies that are manufacturing in the US or have committed to do so.

Although he has not clarified the terms, the mixed performances of tech companies in the stock market following the announcement clearly indicate which of them the market thinks will benefit from the exemption — mainly the big players such as Nvidia, Apple, Intel, Samsung and TSMC all of whose share price saw a marked rise — and those that will not, such as Tokyo Electron and Renesas Electronics.

The rates on semiconductors and other key tech goods have been subject to a US national security probe, the results of which are expected to be announced by mid-August. By choosing to jump the gun by making public the 100 percent tariff threat, the US administration is obviously intent on goading the tech companies that have not yet made a commitment to invest in the US into doing so.