Wall Street recently celebrated when NVIDIA seemed safe from major tariffs. Lynx Equity predicted the company would quickly return to record stock prices. But the Trump administration just created a major problem for the GPU maker.
Markets felt relief when President Trump set a 10 percent global import tariff for most US trading partners except China. He temporarily removed tariffs on semiconductors from China, cutting the total Chinese import tariff rate from 145 percent to 104 percent. Chinese electronic imports still face a 20 percent fentanyl-related tariff.
The good news ended suddenly for NVIDIA. The company announced it expects charges up to $5.5 billion during fiscal Q1 2026 from issues with its China-specific H20 GPU. The Trump administration told NVIDIA on April 9 that H20 chips need an indefinite export license going forward. These restrictions also affect other chips with similar memory capabilities.
Lynx Equity claims that NVIDIA avoids most US tariffs because its AI servers come from outside America, with final assembly happening in Taiwan. The new H20 restrictions might cause Beijing to strike back since China has little left to lose.
Markets felt relief when President Trump set a 10 percent global import tariff for most US trading partners except China. He temporarily removed tariffs on semiconductors from China, cutting the total Chinese import tariff rate from 145 percent to 104 percent. Chinese electronic imports still face a 20 percent fentanyl-related tariff.
The good news ended suddenly for NVIDIA. The company announced it expects charges up to $5.5 billion during fiscal Q1 2026 from issues with its China-specific H20 GPU. The Trump administration told NVIDIA on April 9 that H20 chips need an indefinite export license going forward. These restrictions also affect other chips with similar memory capabilities.
Lynx Equity claims that NVIDIA avoids most US tariffs because its AI servers come from outside America, with final assembly happening in Taiwan. The new H20 restrictions might cause Beijing to strike back since China has little left to lose.
