Global technology stocks surged on August 7, 2025, following President Donald Trump's announcement of new semiconductor tariffs. The market responded positively to exemptions for companies committing to U.S.-based manufacturing investments, indicating a strategic push to boost domestic production. Apple's shares rose 2.9% in premarket trading after pledging an additional $100 billion in U.S. investments, a move expected to shield its iPhone production from tariffs. Major semiconductor partners Applied Materials and Texas Instruments saw gains of 8.5% and 3.5%, respectively. European chip companies ASML and BE Semiconductor also advanced over 3% due to a zero-tariff agreement on semiconductor equipment between the EU and the U.S.
The tariff announcement, designed to incentivize domestic manufacturing, has raised concerns in countries like the Philippines and Malaysia, which depend heavily on semiconductor exports. Analysts suggest final tariff rates could be negotiated, potentially easing inflationary pressures on consumers. The U.S. Commerce Secretary forecasts a significant increase in monthly tariff revenue, projecting at least $50 billion per month with higher levies. In parallel, diplomatic efforts concerning the conflict in Ukraine have intensified, with potential summit plans between President Trump and Russian President Vladimir Putin underway, though dates and locations remain unconfirmed. Experts from Morgan Stanley and Barclays highlighted uncertainty regarding the exact criteria for tariff exemptions, particularly what constitutes a valid commitment to build U.S. facilities. The market's positive reaction suggests relief, as the immediate impact of a 100% tariff appears mitigated by these exemptions. Companies with existing or planned U.S. manufacturing operations, such as Texas Instruments and GlobalFoundries, are positioned as potential beneficiaries, signaling a trend towards supply chain localization and increased capital investment in U.S. semiconductor infrastructure.