Global chipmakers feel the pinch of Trump’s shifting trade policy

An NVIDIA logo is displayed on a building in Taipei, Taiwan, on April 16, 2025. (REUTERS)
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Updated 17 April 2025
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Global chipmakers feel the pinch of Trump’s shifting trade policy

  • Nvidia has warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China
  • Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market

 

Global chip stocks were battered on Wednesday on fresh evidence of how US President Donald Trump’s shifting trade policy was complicating the outlook for semiconductor and computing giants, including AI pioneer Nvidia and its rival AMD.
Attempts to reorient global trade through tariffs and export curbs have started to show the effect as Nvidia warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China, while Dutch chip-making tools giant ASML raised doubts about its outlook.
The US restriction, which also hit the MI308 processor of Advanced Micro Devices, marked the latest blow for the AI chip trade that is losing steam after a two-year rally as tariff threats and fears over Big Tech’s spending weigh on sentiment.
Nvidia shares closed down nearly 7 percent on Wednesday, with the company losing more than $148 billion in market value. AMD fell 5.8 percent as it warned of a $800 million hit from the latest curb, while AI-related chip stocks including Arm, Broadcom and Micron dropped between 2.5 percent and 4.6 percent.
Nvidia said on Wednesday that it follows the US government’s directions on where it can sell its chips after the US Commerce Department announced on Tuesday it was issuing new export licensing requirements for Nvidia’s H20 chips.
“The US government instructs American businesses on what they can sell and where — we follow the government’s directions to the letter,” Nvidia said.
“The technology industry supports America when it exports to well-known companies worldwide — if the government felt otherwise, it would instruct us,” the company added.




Global stock markets mostly retreated Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world's biggest economies. (AFP)

Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market, but the country remains a key source of revenue.
“The US export restrictions on Nvidia’s H20 chips highlight the growing geopolitical uncertainty enveloping the tech and semiconductor sectors, particularly under Trump-era-style policy reversals,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
“This unpredictability rattles businesses and investment markets, as evidenced by Nvidia’s selloff this morning and broader pressure across chip stocks.”
Nvidia drew over 13 percent of its sales, or about $17 billion, from China in its last financial year, although that was down from 21 percent in fiscal 2023. For AMD, China was its second-largest market last year, accounting for more than 24 percent of total sales.
“The H20 portion was about $12 billion or so (of the total China revenue), roughly about 30 cents of earnings per share, not trivial but not enormous in the grand scheme of things,” Bernstein analyst Stacy Rasgon said.
“H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei.”
Rasgon said the move may have surprised many investors as shares had surged nearly 18 percent last week, partly due to a report that the Trump administration planned to back off from such a curb after CEO Jensen Huang attended a Mar-a-Lago dinner.
The company had earlier this week unveiled plans to build AI servers worth as much as $500 billion in the US over the next four years, a move largely seen as an overture to Trump.
Trump has for now exempted semiconductors and some other electronics from his tariffs, but he has warned that sector-specific levies will be announced in the coming weeks.
Such tariffs could cost US semiconductor equipment makers more than $1 billion a year, Reuters reported on Tuesday.

NVIDIA fallout
News of the latest export curb on Nvidia sparked a selloff in chip companies and its suppliers across the globe.
In South Korea, Samsung closed down about 3 percent, while SK Hynix closed 4 percent lower.
European chipmakers ASM International and Infineon Technologies fell more than 2 percent, while Japanese chip-testing equipment maker Advantest — an Nvidia supplier — was the Nikkei’s second-worst performer with a 5 percent tumble.

Still, some analysts said Nvidia’s overall sales have continued to surge even as the China contribution slows while chip demand remains strong from big cloud companies.
“While we acknowledge the likely impact to near-term numbers, we would stress that Blackwell shipments to core hyperscale customers remains the driver of fundamentals,” TD Cowen analysts said, referring to Nvidia’s latest line of AI systems.
 


New Trump human resources czar distances himself from Elon Musk

Updated 22 July 2025
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New Trump human resources czar distances himself from Elon Musk

  • Kupor said he had told Trump and other people in the White House that “my job is to do the agenda that the president lays out to the best I can.”

WASHINGTON: The new chief of the agency spearheading efforts to slash the federal workforce said on Monday he had no personal ties to tech billionaire and former Trump adviser Elon Musk, pledging to faithfully execute President Donald Trump’s agenda.
“I have zero personal relationship with Elon Musk. I have talked to Elon Musk once on the phone in my life,” Scott Kupor, who was sworn in to lead the Office of Personnel Management earlier this month, told reporters.
The comments underscored lingering questions about the loyalties of Silicon Valley tech entrepreneurs among Trump administration officials following a public spat between Trump and Musk that led to a deep rift between the two former allies.
Kupor said he had told Trump and other people in the White House that “my job is to do the agenda that the president lays out to the best I can.”
“But I’m not going to do it consistent with someone else’s objectives that are inconsistent with what the president wants to do,” he added.
Musk, who spent over a quarter of a billion dollars to help Trump win November’s presidential election, led the Department of Government Efficiency’s efforts to slash the budget and cut the federal workforce until his departure in late May to refocus on his tech empire, including electric vehicle maker Tesla .
While Trump hailed Musk’s tenure upon his departure, the president quickly pulled the nomination of Musk ally and tech entrepreneur Jared Isaacman to lead NASA. Reuters previously reported that Musk was disappointed by Isaacman’s removal.
The president also threatened to cancel billions of dollars worth of contracts between the federal government and Musk’s companies after Musk denounced Trump’s tax-cut and spending bill as a “disgusting abomination.”
Prior to taking the helm at OPM, Kupor was a partner at Silicon Valley-based venture capital firm Andreessen Horowitz, which invests in Musk’s AI startup Xai as well as SpaceX. 


White House restricts WSJ access to Trump over Epstein story

Updated 22 July 2025
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White House restricts WSJ access to Trump over Epstein story

  • The punishment of the Wall Street Journal marks at least the second time the Trump administration has moved to exclude a major news outlet from the press pool over its reporting

WASHINGTON: The White House on Monday barred The Wall Street Journal from traveling with US President Donald Trump during his upcoming visit to Scotland, after the newspaper reported that he wrote a bawdy birthday message to his former friend, alleged sex trafficker Jeffrey Epstein.
The move comes after Trump on Friday sued the WSJ and its media magnate owner Rupert Murdoch for at least $10 billion over the allegation in the article, which Trump denies.
The Trump administration’s handling of the Epstein case has threatened to split the Republican’s far-right Make America Great Again (MAGA) base, with some of his supporters calling for a full release of the so-called “Epstein Files.”
The punishment of the Wall Street Journal marks at least the second time the Trump administration has moved to exclude a major news outlet from the press pool over its reporting, having barred Associated Press journalists from multiple key events since February.
“As the appeals court confirmed, The Wall Street Journal or any other news outlet are not guaranteed special access to cover President Trump in the Oval Office, aboard Air Force One, and in his private workspaces,” said Press Secretary Karoline Leavitt.
“Due to The Wall Street Journal’s fake and defamatory conduct, they will not be one of the thirteen outlets on board (Air Force One).”
Trump departs this weekend for Scotland, where he owns two golf resorts and will meet with UK Prime Minister Keir Starmer.
Earlier this month, the US Department of Justice, under Trump-appointed Attorney General Pam Bondi, said there was no evidence suggesting disgraced financier Epstein had kept a “client list” or was blackmailing powerful figures before his death in 2019.
In its story on Thursday, the WSJ reported that Trump had written a suggestive birthday letter to Epstein in 2003, illustrated with a naked woman and alluding to a shared “secret.”
Epstein, a longtime friend of Trump and multiple other high-profile men, was found hanging dead in a New York prison cell in 2019 while awaiting trial on charges that he sexually exploited dozens of underage girls at his homes in New York and Florida.
The case sparked conspiracy theories, especially among Trump’s far-right voters, about an alleged international cabal of wealthy pedophiles.
Epstein’s death — declared a suicide — before he could face trial supercharged that narrative.
Since returning to power in January, Trump has moved to increase control over the press covering the White House.
In February, the Oval Office stripped the White House Correspondents’ Association (WHCA) of its nearly century-old authority to oversee which outlets have access to certain restricted presidential events, with Trump saying that he was now “calling the shots” on media access.
In a statement, the WHCA president urged the White House to “restore” the Journal to the pool.
“This attempt by the White House to punish a media outlet whose coverage it does not like is deeply troubling, and it defies the First Amendment,” said WHCA President Weijia Jiang.
“Government retaliation against news outlets based on the content of their reporting should concern all who value free speech and an independent media.”

 


Zelensky names new ambassadors during Ukraine political shakeup

Yulia Svyrydenko, Prime Minister of Ukraine. (X @Svyrydenko_Y)
Updated 22 July 2025
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Zelensky names new ambassadors during Ukraine political shakeup

  • Zelensky launched a major government reshuffle last week, promoting Yulia Svyrydenko, 39, who had served as economy minister and is well known in Washington, to head the cabinet as prime minister

MOSCOW: Ukrainian President Volodymyr Zelensky appointed over a dozen new ambassadors on Monday, during a big shakeup that has seen him replace top cabinet officials and envoys to shore up relations with Washington and isolate Russia internationally.
The new envoys named on Monday include ambassadors to NATO members Belgium, Canada, Estonia and Spain, as well as major donor Japan and regional heavyweights South Africa and the United Arab Emirates.

Ukraine's deputy prime minister for European and Euro-Atlantic integration Olha Stefanishyna in Kyiv. (AFP file photo)

Zelensky launched a major government reshuffle last week, promoting Yulia Svyrydenko, 39, who had served as economy minister and is well known in Washington, to head the cabinet as prime minister.
Deputy Prime Minister Olha Stefanishyna is set to become Ukraine’s new envoy to the United States, as Ukraine seeks to mend ties with the Trump administration.
In remarks to the diplomatic corps released by his office, Zelensky said envoys needed to support “everything that causes Russia pain for its war.”
“While the content of our relationship with America has transformed following the change in administration, the goal remains unchanged: Ukraine must withstand Russia’s strikes,” Zelensky said. 

 

 


A recap of the trial over the Trump administration’s crackdown on pro-Palestinian campus protesters

Updated 22 July 2025
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A recap of the trial over the Trump administration’s crackdown on pro-Palestinian campus protesters

  • US lawyer William Kanellis said that out of about 5,000 pro-Palestinian protesters investigated by the federal government, only 18 were arrested

BOSTON: The Trump administration’s campaign of arresting and deporting college faculty and students who participated in pro-Palestinian demonstrations violates their First Amendment rights, lawyers for an association representing university professors argued in federal court.
The lawsuit, filed by several university associations, is one of the first against President Donald Trump and members of his administration to go to trial. US District Judge William Young heard closing arguments Monday in Boston.
He did not say or indicate when or how he would rule. But he had some sharp words when talking about Trump.
“The president is a master of speech and he certainly brilliantly uses his right to free speech,” Young told federal lawyers. But whether Trump “recognizes whether other people have any right to free speech is questionable,” he added.
Plaintiffs are asking Young to rule that the policy violates the First Amendment and the Administrative Procedure Act, a law governing how federal agencies develop and issue regulations.
No ideological deportation policy
Over the course of the trial, plaintiffs argued that the crackdown has silenced scholars and targeted more than 5,000 pro-Palestinian protesters.
“The goal is to chill speech. The goal is to silence students and scholars who wish to express pro-Palestinian views,” said Alexandra Conlan, a lawyer for the plaintiffs.
She went on to say that this chilling effect caused by “intimidating and scaring students and scholars” is “exactly what the First Amendment was meant to prevent.”
But federal lawyers and a top State Department official testifying for the government insisted there was no ideological deportation policy as the plaintiffs contend.
John Armstrong, the senior bureau official in Bureau of Consular Affairs, testified that visa revocations were based on longstanding immigration law. Armstrong acknowledged he played a role in the visa revocation of several high-profile activists, including Rumeysa Ozturk and Mahmoud Khalil, and was shown memos endorsing their removal.
Armstrong also insisted that visa revocations were not based on protected speech and rejected accusations that there was a policy of targeting someone for their ideology.
“It’s silly to suggest there is a policy,” he said.
Were student protesters targeted?
US lawyer William Kanellis said that out of about 5,000 pro-Palestinian protesters investigated by the federal government, only 18 were arrested. He said not only is targeting such protesters not a policy of the US government, he said, it’s “not even a statistical anomaly.”
Out of the 5,000 names reviewed, investigators wrote reports on about 200 who had potentially violated US law, Peter Hatch of ICE’s Homeland Security Investigations Unit testified. Until this year, Hatch said, he could not recall a student protester being referred for a visa revocation.
Among the report subjects was Palestinian activist and Columbia University graduate Khalil, who was released last month after 104 days in federal immigration detention. Khalil has become a symbol of Trump’s clampdown on the protests.
Another was the Tufts University student Ozturk, who was released in May from six weeks in detention after being arrested on a suburban Boston street. She said she was illegally detained following an op-ed she co-wrote last year criticizing her school’s response to the war in Gaza.
Hatch said most leads were dropped when investigators could not find ties to protests and the investigations were not inspired by a new policy but rather by existing procedures in place at least since he took the job in 2019.
Patrick Cunningham, an assistant special Agent in charge with Homeland Security investigations in Boston and who was involved in Ozturk’s arrest, said he was only told the Tuft University student was being arrested because her visa was revoked.
But he also acknowledged being provided a memo from the State Department about Ozturk as well as a copy of an op-ed she co-wrote last year criticizing her university’s response to Israel and the war in Gaza. He also admitted that he has focused more on immigration cases since Trump’s inauguration, compared to the drugs smuggling and money laundering cases he handled in the past.
Professors spoke of scaling back activism
During the trial, several green card-holding professors described scaling back activism, public criticism and international travel following Khalil’s and Ozturk’s arrests.
Nadje Al-Ali, a green card holder from Germany and professor at Brown University, said she canceled a planned research trip and a fellowship to Iraq and Lebanon, fearing that “stamps from those two countries would raise red flags” upon her return. She also declined to participate in anti-Trump protests and abandoned plans to write an article that was to be a feminist critique of Hamas.
“I felt it was too risky,” Al-Ali said.

Kanellis, a US government attorney, said “feelings” and “anxiety” about possible deportation do not equate to imminent harm from a legal standpoint, which he argued plaintiffs failed to establish in their arguments.

 


US withdrawing 700 Marines from Los Angeles: Pentagon

Updated 22 July 2025
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US withdrawing 700 Marines from Los Angeles: Pentagon

WASHINGTON: The 700 US Marines in Los Angeles are being withdrawn, ending a contentious deployment of the troops in the city, the Pentagon announced on Monday.
President Donald Trump ordered thousands of National Guard and hundreds of Marines into Los Angeles last month in response to protests over federal immigration sweeps — a move opposed by city leaders and California’s Democratic Governor Gavin Newsom.
Defense Secretary Pete Hegseth “has directed the redeployment of the 700 Marines whose presence sent a clear message: lawlessness will not be tolerated,” Pentagon spokesman Sean Parnell said in a statement.
“Their rapid response, unwavering discipline, and unmistakable presence were instrumental in restoring order and upholding the rule of law,” he added.
Los Angeles Mayor Karen Bass also announced the withdrawal of the Marines in a post on X, saying it was “another win” for the city and that the presence of the troops was “an unnecessary deployment.”
The removal of the Marines comes after the Pentagon said last week that Hegseth had ordered the withdrawal of 2,000 National Guard personnel from Los Angeles, roughly halving the deployment of those troops in the city.
As a so-called “sanctuary city” with hundreds of thousands of undocumented people, Los Angeles has been in the crosshairs of the Trump administration since the Republican returned to office in January.
After immigration enforcement raids spurred unrest and protests last month, Trump — who has repeatedly exaggerated the scale of the unrest — dispatched the National Guard and Marines to quell the disruption.
It was the first time since 1965 that a US president deployed the National Guard against the wishes of a state governor.