ON Semiconductor shares fell 7% in pre-market trading on April 4, 2025, following China's announcement of a 34% tariff on all U.S. imports. This move by China is a direct response to escalating trade war tensions.
The new tariffs are particularly impactful for U.S. chipmakers, including ON Semiconductor, given their significant reliance on demand from the Chinese market. Such tariffs threaten to erode profit margins and reduce market share for these companies.
The imposition of these tariffs adds a layer of geopolitical risk and economic uncertainty for semiconductor manufacturers. It highlights the challenges faced by companies with extensive international supply chains and customer bases.
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