Shares in semiconductor giants Nvidia (NVDA) and Advanced Micro Devices (AMD) were bashed today as President Trump said tariffs on chips were only a fortnight away.
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Firing Line
Speaking on board Air Force One as he made his way to a summit with Russia’s President Putin over a potential end to the Ukraine war, Trump said chips and steel were next in the tariff firing line.
“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips,” Trump told reporters.
He said the rates would be lower at the start to allow companies to build up domestic manufacturing in the U.S., rising sharply later, following a pattern he has also outlined for tariffs on pharmaceuticals. He did not reveal what rates of tariff he would impose.
“I’m going to have a rate that is going to be lower at the beginning – that gives them a chance to come in and build – and very high after a certain period of time,” he said.
Trump added that he felt confident that companies would opt to manufacture in the United States, rather than face high tariffs.
Trump in February raised tariffs on steel and aluminum to a flat 25%, but he announced in May that he would double the rate to 50% to boost domestic manufacturers. He also said that he was ready to impose a tariff of 100% on imports of semiconductors, but companies that committed to building up manufacturing in the United States would be exempt.
Tariff Weight
The tariff threat has been a big weight on semiconductor stocks this year particularly around April when concerns were – until now – at their highest.
They have reacted by upping their U.S. manufacturing commitment. Nvidia has already announced plans within the next four years to produce up to half a trillion dollars of AI infrastructure in the United States through partnerships with the likes of TSMC (TSM) and Foxconn. It has also commissioned more than a million square feet of manufacturing space to build and test NVIDIA Blackwell chips in Arizona and AI supercomputers in Texas.
Advanced Micro Devices CEO Lisa Su was also recently asked about incentives to bring chip manufacturing to the U.S. during an interview with Wired. In response, she said, “We absolutely should bring manufacturing back to the US. Absolutely, 100 percent.”
What Stocks are Most at Risk From Trump Tariffs?
We have rounded up the stocks most at risk from Trump’s tariffs using our TipRanks comparison tool.
