US President Donald Trump, as reported by Reuters, is poised to slap a 100% tariff on imported semiconductor chips, but exemptions will be granted to companies that have committed and are building capacity in the US, according to Citi's research report.

Meanwhile, Apple (AAPL.US) has announced a plan to invest an additional USD100 billion in the US, accelerating its total US investment to USD600 billion over the next four years.

Apple has also launched the American Manufacturing Program aimed at relocating more supply chain and advanced manufacturing capabilities back to the US. Consequently, Citi believes the company is likely to receive a chip tariff exemption.

Along with the US imposing a 25% tariff on Indian goods, the sentiment in China's Apple supply chain has improved. Related stocks may react positively as uncertainties are eliminated ahead of the new iPhone launch.

Citi prefers stocks benefiting from the foldable iPhone, such as LENS (06613.HK) (300433.SZ) and DONGSHAN PRECISION (002384.SZ), followed by companies increasing their market share in iPhone components, such as AAC TECH (02018.HK), COWELL (01415.HK), and LUXSHARE PRECISION (002475.SZ).
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AAStocks Financial News
Web Site: www.aastocks.com

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