Analysts weigh implications of Section 232 semiconductor tariffs

Investing.com -- Equity analysts at Morgan Stanley and Barclays warned of uncertainty surrounding President Trump’s plan to impose 100% tariffs on semiconductor imports under Section 232, with significant implications for U.S. and global chipmakers.

The White House said the tariffs would not apply to companies actively building or committed to building facilities in the United States.

“If you say you’ve committed but don’t build, we’ll add up the charges,” President Trump said.

Morgan Stanley called the announcement “something of a relief” given fears of an immediate tariff shock.

“The real tax is just the higher cost of building chips in the United States,” it said, adding that timing around what qualifies as a valid “intent to build” remains a key unknown.

Barclays noted the 100% rate was “materially higher than fears we heard of 25%,” but said the plan would likely be “phased in to reshore manufacturing while minimising supply chain disruptions.”

Winners could include companies with existing U.S. production such as Texas Instruments (NASDAQ: TXN) and GlobalFoundries (NASDAQ: GFS), though Morgan Stanley argued that “the real optimization is to be prepared for multipolarity – that is, to build in the regions where the product is consumed.”

Apple (NASDAQ: AAPL) appears to be a near-term beneficiary. Morgan Stanley said its new $100 billion domestic investment plan makes it “entirely exempt” from Section 232 tariffs.

“For Apple, tariff rates should get no worse, which is a much better-than-feared outcome,” the bank wrote.

Final details are expected within days. Analysts said they anticipate more U.S. investment pledges from affected firms.

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