##  [# 100% Tariff? Semiconductor ETFs Don’t Blink](/sections/features/100-tariff-semiconductor-etfs-dont-blink) 

 

# 100% Tariff? Semiconductor ETFs Don’t Blink

 

 

Investors bet exemptions will soften the blow.



 

 

 

 

 [![sumit](/sites/default/files/styles/author_image_icon/public/2023-03/Sumit_0.png?itok=SO-7S5SH "sumit")](/authors/sumit-roy) 

[By Sumit Roy ](/authors/sumit-roy)

 Aug 07, 2025

 Edited by: ETF.com Staff

 

 

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Semiconductor ETFs rallied Thursday even as President Trump threatened a 100% tariff on chips not made in the U.S., a move that would mark one of the most aggressive import barriers yet in his trade agenda.

The [**iShares Semiconductor ETF (SOXX)**](/soxx) rose as much as 2.7%, while the [**VanEck Semiconductor ETF (SMH)**](/smh) climbed 2.8%. Shares of [Taiwan Semiconductor](/stock/TSM) surged 7%, and [Nvidia](/stock/NVDA) reached a new all-time high.

“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said during remarks at the White House. “But if you’re building in the United States of America, there’s no charge.”

That exception appeared to calm markets, with investors taking the comment to mean that many leading chipmakers and their customers may be spared.

## Apple's Big Investments 

The remarks came alongside an announcement that Apple would invest an additional $100 billion in the U.S., adding to the $500 billion it pledged earlier this year. While Apple doesn’t sell chips directly, it has increasingly designed the semiconductors used in its iPhones and Macs, and now plays a major role in the broader U.S. silicon ecosystem.

In a press release, Apple outlined plans to work with TSMC, GlobalFoundries, Texas Instruments, Samsung, Applied Materials, GlobalWafers, Amkor, and Broadcom to expand semiconductor design, manufacturing, and packaging across the U.S. It cited efforts in Arizona, Texas, New York, and Utah, involving everything from advanced wafer production to chip packaging.

Notably, Apple said its U.S. supply chain is on track to produce more than 19 billion chips for Apple products in 2025, with TSMC’s Arizona fab playing a central role.

Trump singled out Apple as an example of a company that would likely be exempt from the proposed tariffs.

“The good news for companies like Apple is if you’re building in the United States or have committed to build…there will be no charge,” he said.  
  
It remains unclear whether the tariff would even apply to companies like Apple that design chips but don’t sell them directly. But regardless, Trump’s comments on exemptions, and the ongoing wave of U.S.-based semiconductor investment, helped ease investor concerns.

 
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## A Steep Threat with Broad Exemptions 

The 100% figure is aggressive, even by Trump-era standards. Previous tariffs on inputs like steel, aluminum, and copper reached as high as 50%, though many came with carveouts.

TSMC, which manufactures the majority of the world’s most advanced chips in Taiwan, has committed tens of billions of dollars to its Arizona fabs. Its customers include Nvidia, which designs the high-end AI chips powering data centers and generative AI chatbots like ChatGPT.

Nvidia CEO Jensen Huang reportedly met with Trump ahead of the tariff announcement and has pledged massive U.S. infrastructure investments with its partners.

While much of this investment push predates the tariff threat, driven largely by soaring AI demand, the Trump announcement may accelerate efforts to bring more of the chip manufacturing process, and the broader semiconductor supply chain, back to the U.S. Broader geopolitical tensions, including China's stance on Taiwan, have also added urgency to efforts to reduce dependence on overseas chip production.



 

 

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 [ Sumit Roy Senior ETF Analyst ](/authors/sumit-roy) 

 

 

  Sumit Roy is the senior ETF analyst for etf.com and author of (Don't) Invest Like a Pro. He creates a variety of content for the platform, including…   [View Bio](/authors/sumit-roy)

 



 

 


 Related Topics  [Semiconductors](http://www.etf.com/topics/semiconductors)