TSMC exempt from tariffs?

[Fred Chen]

TSMC stock was up almost 5% on the Taiwan Stock Exchange today on the belief that TSMC would be exempt from Trump's tariffs, due to building factories and investing in the United States.

收盤／川普祭晶片關稅大刀！台積電傳豁免暴漲55元　台股爆量收漲556點 | 三立iNEWS | 三立新聞網 SETN.COM

在川普對半導體揮出「關稅鐵拳」，但台積電有望豁免的利多激勵下，今(7)日台股多頭氣勢如虹，大盤收漲556點、櫃買指數同步勁揚1.48%，成交量擴至逾4,500億元，顯示買氣強勁。川普於美國時間6日美股盤後拋出震撼彈，宣布對進口晶片課徵100%關稅，但明確指出「在美設廠」企業不在此限，並點名台積電正在美投資2,000億美元，市場解讀台積電未來出貨美國市場仍可免除關稅衝擊。消息激勵台積電也帶動今台股開高走高。

inews.setn.com

 

[Fred Chen]

However, I fear Trump's playbook is to use the threat of tariffs to demand more investment.

Trump previously threatened Apple with extra tariffs unless it moved iPhone manufacturing to the US.

 

[siliconbruh999]

they just have to show for 3 years and after that everyone is going to pull back to a sane investment

 

[Paul2]

However, I fear Trump's playbook is to use the threat of tariffs to demand more investment.

Trump previously threatened Apple with extra tariffs unless it moved iPhone manufacturing to the US.

He can just do so, and cause an apocalypse in the retail trade, and Silicon Valley circles (some of which bankrolled his campaign.)

 

[Paul2]

they just have to show for 3 years and after that everyone is going to pull back to a sane investment

It's actually interesting how runaway financial market propels otherwise economically suicidal decisions. If not for glowing hot financial market, economic consequences would've been far more severe for America, and less concealable.

The high tide will eventually reverse, and it will be then, when the damage, and consequences will become visible.