Stock futures climbed early Thursday as news broke that former President Donald Trump is planning a dramatic new tariff on imported semiconductors but could exempt companies that increase manufacturing within the United States. The Dow, S&P 500, and Nasdaq futures all pointed higher, driven largely by investor optimism that U.S. tech giants could sidestep the brunt of proposed tariffs.

Trump announced that a 100% tariff would be imposed on imported chips and semiconductors, a move aimed at reducing U.S. reliance on Asian supply chains and bolstering domestic manufacturing. However, he signaled a significant carveout: companies that either already produce chips in the U.S. or are actively building new factories on American soil could be exempt from the tariff. Trump underscored this exemption while highlighting a new pledge from Apple, which committed to investing an additional $100 billion in domestic manufacturing.

The announcement comes as Apple, along with other major tech names like Nvidia and TSMC, have made large commitments to boost U.S.-based production. Collectively, big tech firms have promised around $1.5 trillion in domestic investments since the outset of Trump’s current term. Apple, in particular, enjoyed a strong market response — its shares surged 5% during regular trading hours, then climbed another 2% after the exemption news.

The threat of sweeping chip tariffs raises concerns over rising costs for a broad array of products, from smartphones to cars and AI servers. For now, investor sentiment is upbeat, as companies move swiftly to capitalize on the possible tariff exclusions. The market appears confident that the manufacturing investments by Apple and others could shield them from most of the tariff’s impact, potentially averting significant price hikes for new technology products expected later this year.

As these policies take shape, Wall Street will be watching closely to see if additional tech giants join the push for U.S.-based production and how global supply chains might shift in response to the new trade landscape.