Nvidia, Broadcom and other semiconductor stocks dropped on Tuesday after President Donald Trump announced that tariffs on chips could come as soon as this week.
Speaking on CNBC's Squawk Box on Tuesday, Trump said semiconductor tariffs were on the way. However, specifics of the tariffs remain unclear.
"We're going to be announcing on semiconductors and chips ... because we want them made in the United States," Trump said on the news program. The tariffs will come "within the next week or so."
Most of the world's advanced semiconductors come from Taiwan, home of chip foundry TSMC, as well as South Korea, home of Samsung Electronics.
The Philadelphia semiconductor index, known as SOX, fell 1.1% on the stock market today. The SOX includes the 30 largest semiconductor stocks traded in the U.S., such as AMD, Broadcom and Nvidia. Year to date, the SOX index is up 11.7%.
The iShares Semiconductor ETF dropped 0.7% on Tuesday. The exchange traded fund aims to match the performance of the NYSE Semiconductor Index.
Semiconductor stocks have been bracing for the announcement of Trump tariffs on chips for months. Electronics manufacturers like Apple also are waiting for news on U.S. import tariffs.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
