Apple's bigger issue continues to be its missing AI, says Wedbush's Dan Ives
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Yahoo
35 minutes ago
- Yahoo
Trump plans 100% tariff on computer chips, unless companies build in U.S.
WASHINGTON (AP) — President Donald Trump said Wednesday that he will impose a 100% tariff on computer chips, raising the specter of higher prices for electronics, autos, household appliances and other essential products dependent on the processors powering the digital age. 'We'll be putting a tariff of approximately 100% on chips and semiconductors,' Donald Trump said in the Oval Office while meeting with Apple CEO Tim Cook. "But if you're building in the United States of America, there's no charge." The announcement came more than three months after Trump temporarily exempted most electronics from his administration's most onerous tariffs. The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation. Investors seemed to interpret the potential tariff exemptions as a positive for Apple and other major tech companies that have been making huge financial commitments to manufacture more chips and other components in the U.S.. Big Tech already has made collective commitments to invest about $1.5 trillion in the U.S. since Trump moved back into the White House in January. That figure includes a $600 billion promise from Apple after the iPhone maker boosted its commitment by tacking another $100 billion on to a previous commitment made in February. Now the question is whether the deal brokered between Cook and Trump will be enough to insulate the millions of iPhones made in China and India from the tariffs that the administration has already imposed and reduce the pressure on the company to raise prices on the new models expected to be unveiled next month. Wall Street certainly seems to think so. After Apple's stock price gained 5% in Wednesday regular trading sessions, the shares rose by another 3% in extended trading after Trump announced some tech companies won't be hit with the latest tariffs while Cook stood alongside him. The shares of AI chipmaker Nvidia, which also has recently made big commitments to the U.S., rose slightly in extended trading to add to the $1 trillion gain in market value the Silicon Valley company has made since the start of Trump's second administration. The stock price of computer chip pioneer Intel, which has fallen on hard times, also climbed in extended trading. Inquiries sent to chip makers Nvidia and Intel were not immediately answered. The chip industry's main trade group, the Semiconductor Industry Association, declined to comment on Trump's latest tariffs. Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization. Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the U.S. that were drawn up during the administration of President Joe Biden. Since taking over from Biden, Trump has been deploying tariffs to incentivize more domestic production. Essentially, the president is betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators. By contrast, the bipartisan CHIPS and Science Act that Biden signed into law in 2022 provided more than $50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed. — Liedtke reported from San Ramon, California. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
The White House just got another useless gold ornament.
Billionaire Apple CEO Tim Cook presented Donald Trump with a gaudy personalized gift boasting a 24-karat gold base as the tech giant woo'ed the president at the White House on Wednesday. Cook dropped in to the White House bearing his golden gift to announce the tech company's extra $100 billion investment in American manufacturing as the president still waves the threat of tariffs. The president started the press conference by calling Cook, 'One of the great and most esteemed business leaders and geniuses and innovators anywhere in the world.'
CNBC
an hour ago
- CNBC
Trump's '100% chip tariffs' hit Japan's giants, but Samsung and TSMC rise on U.S. bets
Asia semiconductor-related stocks traded mixed Thursday after U.S. President Donald Trump announced he would impose a 100% tariff on chip imports, with an exemption for companies that are "building in the United States." Details on how much domestic manufacturing is required to qualify for the exemption remain unclear. Japanese semiconductor manufacturer Tokyo Electron fell over 5% before paring losses to trade 2.9% lower as of 11.20 a.m. Japan time (10.20 p.m. ET Wednesday), data from LSEG showed. Other Japanese chip stocks mirrored the fall. Renesas Electronics declined 4% at the open while Advantest slid 3.3%. However, South Korean chip majors Samsung and SK Hynix appeared to be exempted from the 100% tariffs, the country's top trade envoy Yeo Han-koo was reported as saying on the radio. Memory chipmaker SK Hynix rebounded after falling by more than 3% in initial trade. Shares of Samsung Electronics bucked the trend, climbing 2.47%. Apple announced Wednesday that it will use chips produced by Samsung Electronics at the latter's Texas facility for its devices, including iPhones. Taiwan Semiconductor Manufacturing Company — the world's biggest chip supplier — also started the trading session in the green, rising by over 4%. TSMC has announced significant investments in the U.S recently, including an initial $65 billion to build three plants in Arizona, and an additional $100 billion U.S. investment in March. "We're going to be putting a very large tariff on chips and semiconductors," Trump said in the Oval Office on Wednesday, adding that companies like Apple that are building or committed to building in the U.S. won't be charged. "So in other words, we'll be putting a tariff of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge." Ernie Tedeschi, director of economics at the Budget Lab at Yale, noted that "the devil is in the details" as there is no clear framework yet on how exactly the chip tariffs are going to work. While Japanese semiconductor process equipment markets may wobble at the start given the headline shock of "100% tariffs," the move could be positive for the industry given the number of Japanese chipmaking equipment that are indispensable for most chipmakers looking to ramp up U.S. production, said Andrew Jackson, head of Japanese equity strategy at ORTUS Advisors.
