Despite President Trump's recent threat to impose tariffs of approximately 100% on semiconductors manufactured outside the U.S., chip stocks, including Nvidia, have largely shrugged off the announcement. This muted reaction suggests investors may view the threat as a negotiating tactic or believe that companies will adapt by shifting production to the U.S. The situation has been dubbed the latest installment of the 'TACO' trade, referring to Trump's history of using tariffs as leverage in trade negotiations. The market's resilience could also indicate confidence in the continued demand for semiconductors, regardless of tariff implications.