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Donald Trump has been elected as the 47th president of the United States, defeating his Democratic opponent Kamala Harris. Here’s a look at where Trump stands on issues surrounding the technology sector and some of the biggest companies on Wall Street.
Tariffs: President-elect Trump has promoted tariffs of 20% on all imports coming into the country and tariffs as high as 60% on goods made in China.
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Companies like Apple, Inc. (NASDAQ:AAPL) which produces most of its products in China, could be heavily impacted by higher tariffs and may pass those costs onto the consumer as a result.
Chips: The semiconductor industry could be highly effected by Trump’s potential tariff policies. The Biden administration hiked tariffs on semiconductors imported from China with the rate set to increase to 50% by 2025. It is likely Trump will maintain this policy and perhaps hike the tariffs even higher.
The outgoing administration enacted the CHIPS and Science Act to provide funding for American research, manufacturing and workforce development aimed at boosting domestic semiconductor production. Trump has been highly critical of the CHIPS and Science Act and has suggested that implementing high tariffs would drive chip manufacturers to invest their own resources in establishing production facilities inside the U.S.
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Investors and chipmakers will be watching to see if Trump will attempt to claw back funds promised under the CHIPS Act or dismantle or reduce the program.
Trump has also been a vocal critic of Taiwan Semiconductor Manufacturing Company Ltd.’s (NYSE:TSM) planned investments in the US, particularly its $40 billion project in Arizona. Once in office, Trump could attempt to cancel or modify the subsidies that have been promised to the company through the CHIPS Act.
Investors can monitor the market’s reaction to the election results through an ETF that tracks the semiconductor sector, including the iShares Semiconductor ETF (NASDAQ:SOXX) and the VanEck Semiconductor ETF (NASDAQ:SMH).
