The former U.S. president’s strategy opens a new front in the tech war: it saves TSMC and semiconductors, but it strongly impacts the European and Japanese chip-making machinery industry.
Former President Donald Trump has once again shaken up the international stage with his latest trade maneuver: he will not impose tariffs on chips and semiconductors for now, although he will do so on manufacturing equipment used in their production, such as ASML lithography scanners and Tokyo Electron tools. From Air Force One, Trump clarified his stance, momentarily calming markets but straining relations with Europe and Asia.
Chips, safe for now
Tech companies breathed a sigh of relief following the former president’s statements, in which he asserted that chips would not face new tariffs “for now.” Giants like Apple, Google, and NVIDIA had plummeted due to previous uncertainty, but the announcement brought some stability, especially for Taiwan. There, TSMC, the world’s largest semiconductor foundry, continues to play a crucial role in the global supply chain.
Thanks to its agreement with Trump and a $165 billion investment in U.S. territory, TSMC is exempt from the 32% tariff, allowing companies like NVIDIA, Qualcomm, Broadcom, Intel, or AMD to purchase without restrictions. This is a relief for the hardware industry, although it does not extend to equipment manufacturers.
Europe and Japan in the crosshairs
Where the tariff hit hard is on chip manufacturing equipment. Key tools for extreme ultraviolet lithography (EUV High-NA) produced by ASML (Netherlands) and Tokyo Electron (Japan) are now subject to 20% and 24% tariffs, respectively. This move directly affects countries like the Netherlands, Belgium, Germany, and Japan, where businesses rely heavily on exports to the United States.
Trump’s intention, according to various analysts, is twofold: on the one hand, to force Europe and Japan to renegotiate their trade relations, and on the other, to boost U.S. companies like Applied Materials (AMAT) or Lam Research (LRCX) to compete directly in the manufacturing tools arena.
A strategic exception: 20% U.S. components
An unexpected clause revealed by Goldman Sachs and disseminated by the specialized account Jukanlosreve points to a key detail: if a foreign manufacturing tool contains more than 20% of U.S.-origin components, it is exempt from tariffs. This measure is designed to further encourage localization of production on U.S. soil or at least the use of “made in USA” technology.
In practice, this forces European and Japanese manufacturers to choose between two paths: relocating part of their production to the U.S. or increasing the integration of U.S. components into their products. This move strengthens the technological sovereignty of the United States while generating diplomatic and economic pressure on its traditional allies.
A truce or a veiled threat?
Although chips are safe for now, Trump has already indicated that he is considering imposing tariffs on these products as well. This leaves an uncertain scenario for the coming months, especially if trade tensions with China escalate or if multilateral negotiations do not prove fruitful.
The message is clear: the battle for control of the tech sector is not over, it has merely shifted fronts. In this new chapter, Europe and Japan find themselves in a delicate position while the United States strengthens its “bring the industry home” strategy, no matter the cost.
The battle for chips is now fought not only in laboratories but also in the offices of high political spheres. And Trump, once again, has shown that he knows how to move the pieces.