Global Markets Brace for Chip Tariff Shockwaves

Asia-Pacific Faces Mixed Open Amid Tariff Uncertainty

Global markets navigated a mixed opening session Thursday, with investors keenly observing the semiconductor sector following a bold tariff announcement from U.S. President Donald Trump. Early trading in Asia saw Japan’s Nikkei 225 index hold steady, while the broader Topix gained a modest 0.19%. South Korea’s Kospi dipped slightly, remaining unchanged.

Tech Stocks Under Scrutiny

The central focus for traders is the potential impact of U.S. President **Donald Trump**’s declaration to impose a staggering 100% duty on imported semiconductors and chips. This measure, however, includes an exemption for companies actively establishing or committing to manufacturing operations within the United States. This policy shift has ignited significant speculation across the tech landscape.

U.S. Futures Show Slight Gains

U.S. equity futures experienced a marginal uptick in early Asian trading hours, signaling a cautious start to the day’s session in North America. This modest movement suggests investors are weighing the implications of the proposed tariffs against other market factors.

Market Openings Signal Caution

In anticipation of the trading day, futures for Hong Kong’s Hang Seng index pointed to a softer opening. Similarly, Australian markets were poised for a weaker start, with the S&P/ASX 200 benchmark futures trading below their previous close. Japan’s Nikkei 225 futures also indicated a lower opening compared to its preceding session’s closing value.

Trump’s Tariff Ultimatum

President **Donald Trump** revealed late Wednesday his intention to implement a significant tariff, stating, “We’re going to be putting a very large tariff on chips and semiconductors.” He further elaborated on the exceptions, noting, “But the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.” Following this announcement, Apple shares saw a notable surge of 3% in after-hours trading, building on a substantial 5% gain during regular market hours.

The broad S&P 500 index concluded Wednesday’s trading session higher, climbing 0.73% to close at 6,345.06. The tech-heavy Nasdaq Composite demonstrated stronger performance, jumping 1.21% to finish at 21,169.42. The Dow Jones Industrial Average also registered gains, adding 81.38 points, or 0.18%, to end the day at 44,193.12.