Key Takeaway
Trump’s potential tariff exemptions may benefit companies making significant US investments. Apple will avoid 100% tariffs following its $600 billion commitment to US manufacturing, boosting TSMC’s share price by 5% due to its own US investments. South Korean firms Samsung and SK Hynix are also exempt due to new US chip fabrication plants. While exports will be impacted, the levies will be less severe. Nvidia and AMD have reached agreements with the US government, allowing them to pay 15% of their Chinese revenues for export licenses after previously being banned from exporting advanced technologies to China.
Will Trump make any exemptions?
Despite the broad scope of the threat, some companies seem poised to sidestep the tariffs by making significant investments in the US.
Trump confirmed that Apple would avoid the 100% tariffs after the company’s recent substantial US$600bn commitment to American manufacturing, announced just last week.
This announcement led to a 5% increase in TSMC’s share price as investors recognized that the company’s existing US commitments could protect it from the tariffs.
South Korean officials have stated that Samsung and SK Hynix will not be subject to the tariffs due to their investments in new US chip fabrication facilities.
Exports will also be impacted, although the tariffs on them will be significantly less severe.
Having previously prohibited the export of advanced technologies to China, Nvidia and AMD have now both reached agreements with the US government, which will require them to pay 15% of their Chinese revenues to obtain export licenses.
