U.S. stock futures rose Tuesday after Donald Trump proposed a 100% tariff on all imported semiconductors, aiming to boost domestic chip production and reduce reliance on foreign supply chains.

Key Details

The tariff would apply to all chip imports, but exempts companies that are building or have committed to build U.S.-based factories.

Beneficiaries include Apple, Intel, TSMC, and Samsung, all with major U.S. investment plans.

Apple shares surged over 5%, with tech and chip stocks broadly rallying.

Market Impact

S&P 500 futures rose modestly, led by gains in tech.

Investors view the policy as favorable to U.S.-committed manufacturers, despite concerns over global trade tensions.

Potential Fallout

Economists warn of higher prices for electronics, cars, and appliances.

Legal challenges are expected, with critics questioning the use of emergency powers to enforce the tariffs.

Foreign governments may respond with retaliatory trade measures.