Arm Holdings plc ARM shares are trading lower Wednesday as chip stocks faced broad declines amid continued trade volatility. The market weakness comes as the White House prepares to implement a new set of targeted tariffs on April 2.

What To Know: Initially, the Trump administration planned sweeping tariffs on industries including automotive, semiconductors and pharmaceuticals. However, the latest reports indicate a shift toward a more focused approach, targeting around 15 countries, including China, Japan, Germany, Canada and South Korea. The plan aligns U.S. import duties with those imposed by these nations in an attempt to address trade imbalances.

Treasury Secretary Scott Bessent and other officials have pushed for this narrower tariff structure, moving away from previous broad-tiered systems. While industry representatives have sought exemptions, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jameson Greer have taken a firm stance against exception-heavy policies. Still, President Trump has hinted at some flexibility, suggesting that selective carve-outs could be negotiated.

Despite hopes of more targeted tariffs, uncertainty still rattled markets on Wednesday, with the Nasdaq declining over 2%.

ARM Price Action: Arm shares were down 7.74% at $114.66 at the time of writing, according to Benzinga Pro.

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