Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week.
“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips,” Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported.
Nvidia (NVDA), AMD (AMD) and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%.
Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world’s leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips, commentary that sent chip stocks up. But Friday he implied that exemption may only be temporary.
“I’m going to have a rate that is going to be lower at the beginning – that gives them a chance to come in and build – and very high after a certain period of time,” he said.