Investing.com -- Ming-Chi Kuo, an analyst at TF International Securities, has advised investors to remain cautious about the potential impact of the upcoming semiconductor tariff policy under the U.S. President Donald Trump’s administration. Kuo highlighted the near-term risks surrounding semiconductor stocks, given the administration’s consistent use of tariffs as a tool to incentivize domestic manufacturing.

The Trump administration has shown a particular interest in the semiconductor industry, making it a priority among all sectors. Apple (NASDAQ: AAPL )’s experience serves as a relevant example. Despite the tech giant’s efforts to shift its supply chain away from China during Trump’s first term and its commitment to a $500 billion investment in the U.S., the company was not spared from tariffs.

Kuo pointed out several questions that could help predict the administration’s approach to semiconductor tariffs. These include whether non-U.S. semiconductor companies have made more significant efforts than Apple to reduce their reliance on China, whether they have invested more heavily in the U.S., and whether these companies have stronger ties to the U.S. government.

The answers to these questions, Kuo suggests, could reshape expectations for the future of semiconductor tariffs. He clarified that his stance is not a political judgment on tariffs but a realistic analysis of potential outcomes.

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