Asia-Pacific Markets Mostly Rise as Trump Threatens 100% Tariff on Imported Chips

Asia-Pacific stock markets closed mostly higher on Thursday after U.S. President Donald Trump vowed to impose a 100% tariff on imported semiconductors and chips. In a move aimed at bolstering domestic production, Trump announced that companies manufacturing in the United States would be exempt from these tariffs. However, the exact criteria for qualifying as a U.S.-based producer remains unclear, leaving investors uncertain about the full scope and impact of the policy.

Technology and chip-related stocks across the region showed a mixed response to the announcement. While Taiwanese tech stocks surged—helping the broader Taiwan market rally over 2%—investors elsewhere were more cautious. The news created divergent reactions among markets closely tied to the global semiconductor supply chain, as they tried to assess how U.S. trade policy might disrupt demand and production flows.

Japan’s stock markets led regional gains, with the Nikkei 225 jumping 1.85% to a fresh record high of 41,820.48 during intraday trade, before closing at 41,059.15 with a 0.65% gain. The broader Topix index also climbed 0.72% and briefly touched an all-time high. Strong performance from Japan’s industrial and tech sectors contributed to the surge, as investors bet on the country’s continued relevance in global chip supply.

In South Korea, the Kospi index advanced 0.92% to end the day at 3,227.68, while the Kosdaq index added 0.29%. Hong Kong’s Hang Seng Index also rose 0.69% to close at 25,081.63, although sentiment was more subdued in mainland China, where the CSI 300 index ended flat. The reaction reflects varying degrees of exposure and resilience to possible U.S. tariff shocks.

Australia’s S&P/ASX 200 was the outlier, slipping 0.14% to 8,831.4 despite the broader regional uptrend. Analysts suggest that investor caution in Australia may stem from its economic ties to China and exposure to global commodity demand, which could be indirectly affected by trade friction between the U.S. and Asian tech exporters. Overall, markets appear to be weighing short-term volatility against longer-term shifts in global manufacturing and trade policy.

Source: CNBC