What will be the impact of Trump’s tariffs on American shares and semiconductor industry?

Bloomberg Intelligence’s chief strategic stock analyst, Gina Martin Adams, believes that US multinational companies are likely to suffer from those announced yesterday Saturday (1.2.2025) o , with estimates of the global operating profit margin likely to be hit. “Customs may have an even greater impact on fundamental sizes this time, since they are likely to be more extreme and target a wider set of goods,” comments BI analyst. “American companies will not avoid the highest cost. From the time Donald Trump imposed the first series of duties on imports of washing machines and solar panels in January 2018 until the time the first series of duties on aluminium and steel were abolished by Canada and Mexico, forecasts for the future 12-month operating profit margin were reduced overall by 70 basis points, both within and outside the US.” CORVERSE BI analysts note that tariffs strike just as markets were still assessing DeepSeek’s news, which questioned the position on artificial intelligence that had helped the US become the world stock market with the best performance in 2024. “The prospects for US profits rely much more on AI-related companies than other developed and emerging markets together – making any slowing down particularly worrying,” is noted. “And while real US GDP growth remains close to historical averages, while other developed economies slow down, wider economic indicators suggest the US is only marginally in a better position ahead of 2025”. European chip manufacturers, such as Infineon and NXP, may see deeper and longer downward cycles if tariffs in Canada and Mexico hit the North American car industry, Bloomberg Intelligence analyst for the chip industry, Ken Hui says. China’s duties add further pressure as they could directly cause stocks to be removed in the supply chain, with the possibility of a global recession in semiconductor demand similar to the 2nd half of 2018.