Relief swept through European tech markets as the U.S. eased tariff pressures on electronics from China, sending a jolt of optimism through semiconductor and hardware suppliers. With exclusions granted on key product categories including smartphones and computers, investors poured into European tech, anticipating improved access to the world’s largest consumer market. But with new U.S. tariffs still looming, the momentum comes with a dose of caution.
Shares across Europe’s technology sector surged after the U.S. government temporarily exempted several high-value electronics from steep tariffs, offering a breather to companies exposed to U.S. demand. This exemption, which primarily benefits imports from China, had an immediate effect on European semiconductor players whose fortunes are tightly linked to the American consumer and electronics industries.
According to Equita analyst Alberto Gegra, the exclusion of smartphones, computers, and select electronics from the worst-case tariff scenario temporarily lifts a significant weight off the sector. With some tariffs originally expected to exceed 100%, this move avoids a full-scale disruption of supply chains feeding into the U.S. electronics market. The result was a wave of gains across semiconductor and tech hardware shares.
Among the biggest winners were ASM International, Infineon, and ASML — all major contributors to the semiconductor ecosystem and heavily reliant on the U.S. as a sales destination. These stocks climbed between 2.6% and 3.5% in early Monday trading. ASML, a global leader in photolithography machines used to manufacture chips, particularly benefited from its equipment being excluded from the Trump-era 10% baseline tariff.
The ripple effect of the decision wasn’t limited to Europe. U.S. tech giants listed in Frankfurt also jumped. Apple shares spiked over 6% at one point, while Nvidia advanced more than 3%. Dell Technologies, another bellwether of global hardware supply chains, gained 6.3%, signalling confidence in a near-term recovery of cross-border tech trade.
Europe’s broader tech index rose 2.8%, clawing back a portion of the nearly 10% it lost over the past week amid escalating trade concerns. The rally extended beyond chipmakers. Logitech, the computer peripherals manufacturer, posted an impressive 7% gain. SAP, Europe’s largest tech company by market capitalisation, rose 2%, reinforcing the breadth of investor optimism.
Nasdaq futures also reflected renewed confidence, ticking up 1.6% in early European trading, further underscoring the global implications of the tariff easing.
Still, geopolitical risk continues to cloud the outlook. President Trump has warned that additional levies targeting semiconductors and their supply chains are imminent. Commerce Secretary Howard Lutnick echoed that sentiment, confirming that new duties covering both chips and the previously exempt electronics could be introduced within two months. This suggests that while markets have welcomed the pause, the underlying tension remains unresolved.
The current relief in tech stock valuations may prove temporary if fresh tariffs land as anticipated. Yet for now, the market is taking a measured sigh of relief, betting that global supply chains can continue moving uninterrupted in the short term. For Europe’s high-exposure tech firms, every moment without new barriers is a chance to strengthen position and capitalise on global demand.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
