EU Secures Tariff Cap for Semiconductor Exports to US at 15%

The European Union has secured a tariff cap of 15% for its semiconductor exports to the US, despite initial concerns of up to 100% tariffs. This decision has boosted European tech stocks, with ASML, ASM International, Infineon, and STMicroelectronics seeing gains. The policy has also positively impacted Asian stocks, with Taiwan Semiconductor Manufacturing Company and Foxconn experiencing rises.

The European Union (EU) has secured a 15% tariff cap on its semiconductor exports to the United States, despite initial concerns of up to 100% tariffs. This decision, announced by the European Commission, has boosted European tech stocks, with ASML, ASM International, Infineon, and STMicroelectronics seeing gains. The policy has also positively impacted Asian stocks, with Taiwan Semiconductor Manufacturing Company (TSM) and Foxconn experiencing rises.

President Donald Trump's announcement of potential 100% tariffs on semiconductor imports from countries not producing in the US created significant market uncertainty. However, the EU's commitment to a 15% tariff ceiling has provided clarity and stability to the semiconductor industry. This decision was confirmed by Olof Gill, spokesperson for the European Commission, who stated that the 15% ceiling would apply to EU exports of semiconductors, irrespective of other tariffs imposed by the US on other exporters [4].

The news has had a positive impact on European semiconductor stocks. ASML shares in Amsterdam rose more than 3% Thursday morning, while ASM International gained more than 2.5%. German chip maker Infineon Technologies logged a 0.5% gain, and STMicroelectronics, which supplies to clients like Elon Musk's Tesla and Apple, rose 0.1%. The gains reflect investor confidence in the EU's tariff cap and the stability it brings to the semiconductor market [4].

The semiconductor industry has been navigating months of uncertainty following the Trump administration's investigation under Section 232 of the Trade Expansion Act of 1962. The EU's commitment to a 15% tariff ceiling has helped alleviate some of this uncertainty and has been well-received by investors. The policy has also had a positive impact on Asian stocks, with TSM and Foxconn experiencing rises, indicating a broader positive effect on the global semiconductor market [4].

The 15% tariff cap on EU semiconductor exports to the US is a significant development that provides clarity and stability to the semiconductor industry. As the market continues to evolve, investors and financial professionals should closely monitor the implementation of this policy and its potential long-term effects on the global semiconductor market.

References:
[1] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-china-pushes-back-on-us-chip-dominance-as-trumps-latest-deadline-looms-200619684.html
[2] https://paultan.org/2025/08/07/donald-trump-says-semiconductor-imports-will-face-a-tariff-of-about-100-unless-companies-build-in-the-us/
[3] https://www.investopedia.com/trump-threatens-100-percent-semiconductor-tariff-why-chip-stocks-are-still-rising-11786731
[4] https://www.morningstar.com/news/dow-jones/202508075938/eu-says-chip-exports-to-us-will-have-15-tariff-ceiling-despite-new-levies-update