Markets tumbled today as trade tensions between the US and China intensified. The US raised import tariffs on Chinese goods to 245 percent, sending shockwaves through tech companies. This comes alongside ASML reporting weak bookings and NVIDIA expecting a $5.5 billion loss from new export rules affecting its China-specific H20 GPU.
AMD just announced it faces about $800 million in charges from inventory write-offs and related costs due to export restrictions on its MI308 GPUs for China. These charges represent half of AMD's entire 2024 net income, showing how severely these trade policies hit tech firms. The restrictions apply to China, Hong Kong, Macau, and certain other countries.
The Trump administration recently offered some relief to global trading partners with a 10 percent tariff rate for all countries except China. It temporarily removed tariffs on semiconductor imports from China and might grant limited exemptions for auto companies moving supply chains out of Mexico and Canada. However, China remains targeted with massive tariffs and tight controls on AI chip exports.
More US companies will likely announce financial impacts as the trade conflict between the two economic powers continues to escalate.
AMD just announced it faces about $800 million in charges from inventory write-offs and related costs due to export restrictions on its MI308 GPUs for China. These charges represent half of AMD's entire 2024 net income, showing how severely these trade policies hit tech firms. The restrictions apply to China, Hong Kong, Macau, and certain other countries.
The Trump administration recently offered some relief to global trading partners with a 10 percent tariff rate for all countries except China. It temporarily removed tariffs on semiconductor imports from China and might grant limited exemptions for auto companies moving supply chains out of Mexico and Canada. However, China remains targeted with massive tariffs and tight controls on AI chip exports.
More US companies will likely announce financial impacts as the trade conflict between the two economic powers continues to escalate.
