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

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

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

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.


US hits $38 trillion in debt, after the fastest accumulation of $1 trillion outside of the pandemic

US hits $38 trillion in debt, after the fastest accumulation of $1 trillion outside of the pandemic
Updated 6 sec ago

US hits $38 trillion in debt, after the fastest accumulation of $1 trillion outside of the pandemic

US hits $38 trillion in debt, after the fastest accumulation of $1 trillion outside of the pandemic
  • Expert warns that the growing debt load over time leads ultimately to higher inflation, eroding Americans’ purchasing power
  • The Trump administration says its policies are helping to slow government spending and will shrink the nation’s massive deficit

WASHINGTON: In the midst of a federal government shutdown, the US government’s gross national debt surpassed $38 trillion Wednesday, a record number that highlights the accelerating accumulation of debt on America’s balance sheet.
It’s also the fastest accumulation of a trillion dollars in debt outside of the COVID-19 pandemic — the US hit $37 trillion in gross national debt in August this year.
The $38 trillion update is found in the latest Treasury Department report, which logs the nation’s daily finances.
Kent Smetters of the University of Pennsylvania’s Penn Wharton Budget Model, who served in President George W. Bush’s Treasury Department, told The Associated Press that a growing debt load over time leads ultimately to higher inflation, eroding Americans’ purchasing power.
The Government Accountability Office outlines some of the impacts of rising government debt on Americans — including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services.
“I think a lot of people want to know that their kids and grandkids are going to be in good, decent shape in the future — that they will be able to afford a house,” Smetters said. “That additional inflation compounds” and erodes consumers’ purchasing power, he said, making it less possible for future generations to achieve home ownership goals.
The Trump administration says its policies are helping to slow government spending and will shrink the nation’s massive deficit. A new analysis by Treasury Department officials states that from April to September, the cumulative deficit totaled $468 billion. In a post on X Wednesday, Treasury Secretary Scott Bessent said that’s the lowest reading since 2019.
“During his first eight months in office, President Trump has reduced the deficit by $350 billion compared to the same period in 2024 by cutting spending and boosting revenue,” White House spokesman Kush Desai said in a statement, adding that the administration would pursue robust economic growth, lower inflation, tariff revenue, lower borrowing costs and cuts to waste, fraud and abuse.
The Joint Economic Committee estimates that the total national debt has grown by $69,713.82 per second for the past year.
Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, said in a statement that “reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties.”
“Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget,” Peterson added. “We spent $4 trillion on interest over the last decade, but will spend $14 trillion in the next ten years. Interest costs crowd out important public and private investments in our future, harming the economy for every American.”
The US hit $34 trillion in debt in January 2024, $35 trillion in July 2024 and $36 trillion in November 2024.


New York attorney general urges public to report ICE activity after raid targets vendors

New York attorney general urges public to report ICE activity after raid targets vendors
Updated 23 October 2025

New York attorney general urges public to report ICE activity after raid targets vendors

New York attorney general urges public to report ICE activity after raid targets vendors
  • James urges public to document ICE operations via new online form
  • Trump’s immigration crackdown targets major cities, including New York

NEW YORK: New York State’s attorney general on Wednesday urged the public to submit photos, videos and other documentation of federal immigration operations to her office for review, a day after a high-profile raid targeted Manhattan street vendors.
Attorney General Letitia James said her office would review footage and other information from operations shared through a “Federal Action Reporting Form,” saying in a statement that “every New Yorker has the right to live without fear or intimidation.”
President Donald Trump, a Republican, has launched an aggressive immigration crackdown in major US cities, including Los Angeles, Chicago and Washington, D.C. The San Francisco Chronicle reported on Wednesday that the Trump administration would send more than 100 federal agents to the city to ramp up enforcement, citing an unnamed source.
Protesters in the cities have used phones to record ICE operations, which critics say have employed racial profiling and swept up many immigrants with no criminal records. The immigration raid on New York City’s Canal Street, a prominent shopping area known for bargain prices and imitation goods, triggered pushback in the street from residents in the vicinity.
When asked for comment on James’ oversight effort, US Department of Homeland Security spokesperson Tricia McLaughlin said it “looks like obstruction of justice.”
The new effort to record possible abuses by US Immigration and Customs Enforcement officers and other federal agents is part of a broader resistance by Democrats. US Representative Robert Garcia, a Democrat based in Los Angeles, said on Monday that he and other Democrats would launch an online site to track the agency’s operations and urged the public to record ICE activity.
The Trump administration in March gutted the DHS offices charged with monitoring civil rights abuses as part of its government downsizing efforts.
The ICE monitoring effort by James, a longtime Trump foe, could further inflame political tensions with the White House. James, who brought a civil fraud case against Trump in 2022, was charged earlier this month with lying on a mortgage application, as the Trump administration stepped up its use of government power against his perceived political enemies.
DHS said Tuesday’s operation targeting Canal Street resulted in nine arrests of alleged immigration offenders from Mali, Senegal, Mauritania and Guinea, including some with prior criminal arrests. Four people were arrested for allegedly assaulting law enforcement and another for obstruction of justice, DHS said.
Democratic US Representative Dan Goldman, whose district includes Canal Street, said his office had helped secure the release of four US citizens detained by ICE.
“Dozens of masked federal agents stormed Lower Manhattan, roughing up protesters and indiscriminately arresting people,” Goldman said in statement.
The Canal Street raid came after at least two prominent pro-Trump influencers posted videos in recent weeks focusing on African immigrants selling goods along the busy thoroughfare. One of the influencers, Savanah Hernandez, said in an October 19 post on X that African immigrants without legal status were operating a black market there and urged ICE to visit the area and arrest the vendors.
“I don’t know that ICE officials saw my post,” Hernandez said in an email. “However, the White House has been very responsive to on the ground reporters who have utilized X to share their stories.”
The normally bustling street was largely empty of street vendors on Wednesday, a Reuters witness said.


North Korea says tested ‘cutting-edge’ new weapon system

North Korea says tested ‘cutting-edge’ new weapon system
Updated 23 October 2025

North Korea says tested ‘cutting-edge’ new weapon system

North Korea says tested ‘cutting-edge’ new weapon system

SEOUL: North Korea said on Thursday it had tested a “cutting-edge” new weapon system using hypersonic missiles aimed at bolstering its defenses against Pyongyang’s foes.
The launch was detected by Seoul’s military on Wednesday and was Pyongyang’s first of its kind in months.
It came a week before world leaders, including US President Donald Trump, are set to descend on South Korea for a major regional summit.
Top military official Pak Jong Chon declared the “new cutting-edge weapon system is a clear proof of steadily upgrading self-defensive technical capabilities of the DPRK,” state news agency KCNA said, using North Korea’s official acronym.
KCNA said the test was aimed at enhancing the “sustainability and effectiveness of strategic deterrence against potential enemies.”
North Korean leader Kim Jong Un was not reported to have attended the launch.
State media said the two “hypersonic projectiles” had been launched south of the capital Pyongyang and had hit a target in the country’s northeast.
Images shared by KCNA showed a missile flying through the air, before hitting a target and exploding in a hail of black dirt and smoke.
Hypersonic missiles travel at more than five times the speed of sound and can maneuver mid-flight, making them harder to track and intercept.


British universities ask prime minister to help scholarship students evacuate from Gaza

British universities ask prime minister to help scholarship students evacuate from Gaza
Updated 23 October 2025

British universities ask prime minister to help scholarship students evacuate from Gaza

British universities ask prime minister to help scholarship students evacuate from Gaza
  • The 25 Palestinians were awarded fully funded places at Cambridge, Oxford, Bristol, Exeter, Glasgow, Sussex, and University College London
  • They could lose their places at the universities this year if they are not able to leave Gaza by the end of the week, PM Keir Starmer is told

LONDON: Twenty-five Palestinian students from the Gaza Strip who were awarded scholarships at British universities will lose their places for this year if they are not evacuated from the war-ravaged territory by the end of this week, university chiefs told the UK prime minister, Keir Starmer.

The students received fully funded places to study for undergraduate degrees, master’s and doctorates at Cambridge, Oxford, Bristol, Exeter, Glasgow, Sussex, and University College London.

However, they could lose their places if they are not included on lists for evacuations planned for Oct. 22 and 26 and remain stuck in Gaza, university chiefs warned Starmer in a letter.

Vice-chancellors, principals and presidents from the seven universities also criticized a government ban that prevents the Palestinian students from bringing dependents with them to the UK. They urged ministers to use their “powers of discretion” to allow families of students to settle in the country, The Independent newspaper reported on Wednesday.

They said Palestinian students face an “impossible choice” between the chance to attend a British university and leaving their families behind in a war zone. Only nine of the students would like to bring dependents, the newspaper reported.

Students pursuing a doctorate can begin their studies later, but the others might lose their places because the next evacuation lists will not be available for another month, the university officials said.

They praised the government for the assistance it provided for previous evacuations of scholarship students from Gaza, and its efforts to secure a ceasefire in the territory, and requested urgent updates on a timeline for the evacuation of the remaining students.

“We are increasingly concerned that some eligible students are yet to be called forwards for the evacuations next week, and a small number of students have been given the impossible choice to leave behind their children in order to take up their university places, including babies as young as three months old, or children where there is no other parent alive,” the officials wrote.

UNICEF plans to evacuate students and their families from Gaza through the Kerem Shalom border crossing on Oct. 26, pending approval from the UK’s Foreign Office.

Thirty-five British rabbis and bishops endorsed the call from university chiefs on Wednesday, saying that “compassion should not be hindered by bureaucracy.”


France’s jailed ex-president Sarkozy targeted by death threats, prosecutor office says

France’s jailed ex-president Sarkozy targeted by death threats, prosecutor office says
Updated 23 October 2025

France’s jailed ex-president Sarkozy targeted by death threats, prosecutor office says

France’s jailed ex-president Sarkozy targeted by death threats, prosecutor office says
  • The former president has been assigned two armed police officers for protection during his incarceration, a measure that has sparked complaints from prison guard unions

PARIS: Former French president Nicolas Sarkozy was targeted by death threats from an inmate at Paris’s La Sante prison, where he began serving his sentence this week, prompting a probe, the Paris prosecutor’s office said on Wednesday.
“On October 22, 2025, the Paris prosecutor’s office was informed by the director of La Sante prison of a video circulating on social media, clearly filmed by an inmate, in which he made threats upon Nicolas Sarkozy’s arrival at the facility,” the prosecutor’s office said in an emailed statement to Reuters.
Three inmates were questioned as part of the investigation, and two mobile phones were seized during a search of the prison, it added.
Sarkozy, who led France from 2007 to 2012, on Tuesday began serving a five-year sentence after being convicted of conspiring to raise campaign funds from Libya. The former president has been assigned two armed police officers for protection during his incarceration, a measure that has sparked complaints from prison guard unions.