Chip War: Trump threatens 100% tariff Build or pay. Tariff enforcement now based on construction vibes. Nvidia dodges tariff with $500B handshake

Trump threatens 100% tariff on chips, market calls bluff.

TRUMP: “We will be putting a tariff of approximately 100% on chips and semiconductors unless you build them in the USA” https://www.macrumors.com/2025/08/06/trump-100-percent-tariff-chips/

um…either he’s trolling or the semi stocks are about to pay a pretty big tariff since we barely make any chips in the US. The U.S. chip output is a rounding error, most fabs still offshore. If this goes through, it’s not a tariff, it’s a blackout.

Why Nvidia and other chip stocks are shrugging off Trump’s latest tariff threat? https://www.morningstar.com/news/marketwatch/20250806436/why-nvidia-and-other-chip-stocks-are-shrugging-off-trumps-latest-tariff-threat

As long as they committed to build in US, they exempted? Even a shovel counts. The exemption is based on intent, not output.

Trump: companies “building in the United States, or made a commitment to build or are in the process” won’t pay the tariff. https://www.macrumors.com/2025/08/06/trump-100-percent-tariff-chips/

Even if they’re not producing yet, they’re exempt. https://www.msn.com/en-us/news/politics/trump-says-he-will-impose-100-percent-tariff-on-semiconductors/ar-AA1K2PVw

If they promise and don’t follow through, tariffs will be “added up” and “charged at a later date.” https://www.macrumors.com/2025/08/06/trump-100-percent-tariff-chips/

Nvidia pledged $500B in U.S. AI infrastructure earlier this year. https://www.morningstar.com/news/marketwatch/20250806436/why-nvidia-and-other-chip-stocks-are-shrugging-off-trumps-latest-tariff-threat

That’s why NVDA barely flinched. TXN and GFS, already building in the U.S., jumped 3–6%. Wall Street’s reading the fine print, not the headline.

Wall Street calls it the TACO trade: Trump Always Chickens Out. https://www.morningstar.com/news/marketwatch/20250806436/why-nvidia-and-other-chip-stocks-are-shrugging-off-trumps-latest-tariff-threat