The White House has announced that tariffs will not be imposed on chip imports from Taiwan, reversing an initial plan. The tariff rate for Taiwanese chips was set at 32% by President Trump. However, the decision has sent shockwaves through the tech industry.
Taiwan’s TSMC is responsible for producing about 90% of the world’s most advanced chips, including those used in mobile phones and computer hardware. Companies such as Nvidia, AMD, and Qualcomm heavily rely on these imports. As a result, their stocks have taken a hit.
Nvidia shares fell by 3.3%, while AMD dropped 2.6%. Meanwhile, Qualcomm saw its stock value decline by 2.7%. The news comes despite initial concerns that the tariffs would negatively impact American chip makers.
Source: https://www.barrons.com/livecoverage/trump-tariffs-april-2-liberation-day-news/card/taiwan-s-high-tariff-rate-will-be-bad-news-for-nvidia-yHumoa3Fk27SwMk8Ggbd