Trump Administration Imposes 100% Semiconductor Tariffs, Spurs $100B US Investment

President Donald Trump's administration continues to aggressively use tariffs as a tool in international trade and geopolitical strategy, imposing steep duties such as a 50% tariff on Indian goods to pressure the Modi government over Russian oil purchases and threatening retaliation against Canada for its stance on Palestine. Economists warn that retaliatory tariffs primarily harm domestic populations through higher prices and limited consumer choices, with trade tensions escalating notably between the U.S. and China before partial de-escalation. Trump's recent proposal of a 100% tariff on foreign-made semiconductors, exempting companies manufacturing within the U.S., has triggered a surge in Asian chipmaker stocks like Taiwan Semiconductor Manufacturing Co., especially as these firms expand U.S. operations under the CHIPS and Science Act. The tariff carve-outs have incentivized massive U.S. investments, including Apple's announcement of a $100 billion expansion, but raise concerns about political favoritism supplanting market-driven innovation. While some multinational companies face challenges due to disrupted global supply chains, key beneficiaries include firms with significant U.S. manufacturing footprints, altering the landscape of the semiconductor and technology sectors. These developments underscore the complex interplay between trade policy, corporate strategy, and global markets amid ongoing tariff-driven economic uncertainty.