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US-China Trade Tensions Escalate
- The White House announced that China may now face tariffs of up to 245% on its exports to the United States.
- This move follows China’s retaliatory actions in the ongoing trade dispute.
- The announcement was part of a fact sheet issued Tuesday, which emphasized President Trump’s commitment to “America First” trade policies.
Key Developments
- President Trump has signed an executive order to investigate national security risks stemming from US reliance on imported critical minerals and their derivative products.
- While tariff discussions with over 75 countries are ongoing and individualized tariffs are currently paused, China is excluded from this relief due to its retaliation.
Impact on Technology Sector: Nvidia and AI Chips
- Nvidia announced that new US export controls on AI-related chips could cost the company an additional $5.5 billion.
- The US government has imposed indefinite licensing requirements on chips like Nvidia’s H20 integrated circuits, citing potential use in Chinese supercomputers.
- Nvidia’s shares fell 5.8% in pre-market trading, while AMD shares dropped 6.5%.
- Asian tech stocks also declined:
- Advantest: -6.7% (Tokyo)
- Disco Corp: -7.6%
- TSMC (Taiwan): -2.4%
US Retail Sales Surge in March
- Retail sales rose 1.4% in March, a sharp increase from 0.2% in February, according to the US Commerce Department.
- The boost is largely attributed to a rush in automobile purchases, as consumers aimed to avoid anticipated tariffs.
- However, despite the overall surge, discretionary spending remains under pressure due to economic uncertainty.
