Sign Up Log in

    Trump proposed possible tariffs on countries that impose digital taxes on American tech companies and semiconductors.

    by VT Markets
    /
    Aug 26, 2025
    Trump issued a warning on Truth Social about new tariffs that might target countries with what he calls discriminatory practices. This includes digital taxes and rules impacting U.S. tech companies. He also mentioned possible export restrictions on semiconductors.

    Market Volatility Concerns

    The renewed tariff threat reminds us of the market chaos during the 2018-2019 trade disputes, when the VIX index spiked above 20 multiple times. This could signal a need to protect against a potential market downturn. Buying call options on the VIX or put options on the SPY and QQQ indices could be smart moves right now. We should pay close attention to the tech sector, which is central to the digital tax issue. Companies like Alphabet and Meta get more than 50% of their revenue from international markets. This makes them especially vulnerable if these warnings lead to real action. We plan to buy puts on the XLK technology ETF to protect against weakness in these major companies. The mention of semiconductor export limits is a major concern for a sector that has been thriving. The Philadelphia Semiconductor Index (SOXX) has increased over 25% since early 2025, and this news could cause a sharp drop. It makes sense to take bearish positions on key companies like NVIDIA or the SOXX ETF to prepare for potential supply chain issues.

    Impact on Global Markets

    This isn’t just a problem for the U.S. market; retaliatory tariffs could also affect important exports from Europe and Canada. The Eurozone economy, which depends heavily on exports, is already showing signs of slowing down. For instance, German industrial production dropped in the second quarter of 2025. We are considering strategies that could benefit from a weaker euro, like shorting EUR/USD futures. Create your live VT Markets account and start trading now.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code