Japan is looking to set a 15% tariff on American chips, matching the rate used by the European Union. Akazawa, Japan’s trade negotiator, is confident that Japan can secure this tariff rate for the potential duties that the US plans to impose on chips. This proposed 15% tariff on US chips adds uncertainty to the semiconductor industry. It would directly impact the profits of American chip exports to Japan, a crucial market. According to the Semiconductor Industry Association, exports to Japan made up nearly $12 billion in Q2 2025, which highlights the financial risk involved in this situation.

Trade And Market Strategies

We advise traders to prepare for more fluctuations in major US tech stocks such as NVIDIA, Intel, and AMD in the coming weeks. A good strategy might involve using options to benefit from the price changes as news from the negotiations develops. Looking back at the tariff announcements from 2018, we saw the Philadelphia Semiconductor Index (SOX) experience significant daily swings, which might happen again now. Given that a 15% tariff is likely, buying protective put options on tech-heavy indexes like the Nasdaq 100 or on specific chipmakers can help guard against negative developments. If the US considers a higher rate than 15% or if negotiations falter, it could lead to a sell-off. This cautious approach seems wise until there is an official agreement. In Japan, this tariff news may put pressure on companies that import and depend on high-performance American chips, particularly in the automotive and gaming sectors. For instance, Toyota’s earnings call in May 2025 pointed out its increasing reliance on US chips for autonomous driving technology. This tariff could boost domestic chip makers like Renesas Electronics, making them more competitive.

Currency Market Implications

The currency market, especially the USD/JPY exchange rate, will also be crucial to monitor. Higher import costs for Japan’s manufacturing sector could weaken the yen further. The yen has already dropped below 150 per dollar this month, and the confirmation of this new tariff could push it down even more. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now