Wall Street’s major indices opened higher on Thursday, fuelled by optimism that top technology companies could be exempt from US President Donald Trump‘s newly proposed tariffs on chip imports. The Dow Jones Industrial Average rose 237 points, or 0.54%, to 44,430.09 at the open. The S&P 500 advanced 29.3 points, or 0.46%, to 6,374.32, while the Nasdaq Composite gained 155.6 points, or 0.73%, to 21,325.01.
President Donald Trump announced Wednesday that his administration will impose a 100% tariff on imported computer chips and semiconductors. This could impact the prices of a wide range of consumer goods, including electronics, vehicles, and household appliances. The announcement came during a meeting in the Oval Office with Apple CEO Tim Cook.
“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said. “But if you’re building in the United States of America, there’s no charge.” The policy aims to encourage domestic manufacturing and follows a previous temporary exemption for most electronics from Trump’s earlier tariff plans.
Trump also added that US-based chip production will be spared the tax. Big Tech companies, which have already pledged to boost US-based chip production, are expected to benefit. Apple, for example, has committed $600 billion to domestic investments, an increase of $100 billion from a prior promise, contributing to a collective $1.5 trillion investment by tech giants since Trump’s return to office in January.