Trump Eyes 100% Tariffs on Semiconductors, Sparks Market Watch
US President’s Protectionist Stance Targets Global Chip Trade Amid Investment Push
The Brussels stock exchange is bracing for a slightly higher opening on Thursday, following mixed signals from Wall Street and the specter of significant new U.S. import duties. Markets are closely watching President Trump’s trade policies, which could reshape the global semiconductor industry.
US Automaker Tariffs Loom Over Semiconductor Sector
President **Donald Trump** has signaled an intention to impose a staggering 100 percent import tax on semiconductors, according to reports. This aggressive measure would exempt companies actively producing in the U.S. or those with firm commitments to do so, such as Apple.
“We are going to raise a very high rate on chips and semiconductors,” **Trump** stated, highlighting exemptions for domestic production. This announcement comes as tech giants are being encouraged to onshore manufacturing capabilities.
Apple Commits Billions to US Production
In a move potentially influenced by these discussions, Apple CEO **Tim Cook** met with President Trump on Wednesday. Apple announced a substantial new investment exceeding $100 billion aimed at boosting American manufacturing, following a previous pledge of $500 billion in U.S. investments.
“In other words, we raise a rate of about 100 percent on chips and semiconductors. But if you produce in the United States, there are no costs involved,” **Trump** further elaborated.
Market Resilience Amid Trade Tensions
American stock markets have recently seen near-record highs, bolstered by strong corporate earnings that are currently outweighing concerns over trade policy impacts. Second-quarter profits for S&P 500 companies have surpassed expectations by a notable 9.1 percent, according to Bloomberg Intelligence.
Elsewhere, President Trump noted “great progress” in recent diplomatic talks while maintaining the possibility of further sanctions on Russia’s oil revenue. Oil prices, after a recent climb, showed a continued upward trend in early Asian trading.
India Faces Doubled Tariffs for Russian Energy Purchases
The U.S. has doubled tariffs on Indian goods to 50 percent, a punitive measure for India’s continued purchases of Russian energy. This action aligns with President Trump’s earlier threats regarding nations financing the war in Ukraine through energy trade.
Meanwhile, Swiss trade discussions appear to be stalling, with the Swiss president reportedly returning home without a new agreement. Earlier this week, Switzerland expressed alarm over potential U.S. import duties, particularly a proposed 39 percent tariff that could significantly impact its economic output if applied broadly, including to pharmaceuticals.
Asian stock markets displayed a more subdued performance this morning, avoiding significant downturns.
Company Spotlight: KBC and Xior Report Strong Results
Financial sector company KBC exceeded profit expectations in its second quarter, prompting an upgrade to its financial outlook. The bank revised its interest income forecast upwards to at least €5.85 billion, surpassing analyst predictions of €5.8 billion. KBC also enhanced its total yield growth expectation for 2025 to at least 7 percent.
Real estate firm Xior reported a stronger first-half profit for 2025, meeting expectations and reaffirming its outlook for the year.
Analyst Sentiment: Syensqo Target Raised
Berenberg analysts have increased their price target for Syensqo shares from €76.00 to €80.00, maintaining their previous recommendation for the stock.
Wall Street Finishes Higher
On Wednesday, the S&P 500 Index closed up 0.7 percent at 6,345.06 points. The Dow Jones Industrial Average gained 0.2 percent, settling at 44,193.12 points, while the Nasdaq Composite advanced by 1.2 percent to reach 21,169.42 points.
