Chip giants like Nvidia, AMD, and ASML face billions in losses after Trump's export curbs on selling advanced chips to China, with Nvidia bracing for a $5.5 billion charge, AMD up to $800 million hit, and ASML citing demand uncertainty due to tariff restrictions.
Nvidia grapples with new US export restrictions requiring licenses to sell its H20 AI chips to China, citing national security risks, potentially leading to a $5.5 billion hit in its Q1 2026 fiscal year.
China's export curbs on rare earth elements essential for U.S. defense technologies like fighter jets and missiles threaten America's military edge, as the country lacks short-term alternatives to China's supply of these critical materials, potentially widening the capability gap with Beijing.
Trump's trade war with China upends decades of globalization, exposing the U.S. economy's deep reliance on Chinese imports and the difficulty of finding alternative suppliers, highlighting significant supply chain risks.
A majority of CEOs are bracing for a potential recession within the next six months, with over 60% anticipating one, as trade tensions and tariffs weigh heavily on their businesses, causing profit concerns, according to a survey by Chief Executive.
Investors are fleeing U.S. assets like Treasurys and the dollar, with the 10-year Treasury yield soaring above 4.5% and the U.S. dollar index hitting a 3-year low on Friday, signaling concerns over waning dollar dominance and the currency's appeal as a global reserve amid trade tensions.
Trump's tariffs on Chinese imports are disrupting Amazon sellers who source from China, forcing price hikes or cost absorption, while reviving challenges in reviving U.S. manufacturing due to higher costs and lack of infrastructure, adding uncertainty across the economy.
Stocks plunged on Thursday, erasing gains from the previous day's rally, as investors grappled with the uncertainty surrounding President Trump's 90-day tariff reprieve and the potential for escalating trade tensions with China.
Senators from both parties slammed Meta CEO Mark Zuckerberg over the company's ties to China, accusing him of risking Americans' data while pursuing business opportunities there, and demanded his testimony before Congress to address these concerns.
Nvidia, a leader in AI chips, faces challenges navigating Trump's trade tensions and tariffs that threaten its global supply chain and exports to China, prompting CEO Jensen Huang to fortify the company's dominance through expanding research and talent pipelines worldwide.