Tariff Tensions: Nvidia Hit Hard, ASML Sees Cloudy Outlook

In light of the ongoing US-China trade war, which has seen both countries impose increasingly strict tariffs on each other, it may come as no surprise that even some of the world’s largest and most influential tech companies are feeling the pressure. 

From Nvidia to ASML, here’s how Trump’s controversial and far-reaching tariffs are reshaping the global tech landscape:

Nvidia Faces $5.5B Financial Impact from US-China Chip Sales Ban

On Tuesday, 15 April, artificial intelligence (AI) giant Nvidia (NVDA) delivered a less-than-optimistic update, announcing that it expects to incur $5.5 billion in charges due to the US export ban on its H20 AI chip to China. As the world’s most populous nation, the second-largest economy, and a critical market for Nvidia’s AI chip sales, China plays a pivotal role in the company’s global strategy. The impact of the export restrictions introduced under Trump-era trade policies could, therefore, be substantial.

Why Is the US Banning Chip Sales That Could Lead to Notable Losses?

Nvidia’s AI chips were under the US government’s radar. They underwent strict bans, especially as the latter sought to gain AI superiority over other countries, in general, and China, in particular. To find a loophole in these restrictions, Nvidia started working on chips that could meet the US’s limits. Moreover, Nvidia explained that the US restricted H20 to minimise the risk of China using it as a supercomputer.

The Institute for Progress, a nonpartisan think tank in Washington, D.C, also revealed that "at least one of the buyers, Tencent, has already installed H20s in a facility used to train a large model, very likely in breach of existing controls restricting the usage of chips in supercomputers exceeding certain thresholds. DeepSeek’s supercomputer used to train their V3 model is also likely in breach of the same restrictions," the group wrote.

How Did Nvidia Stock Price React?

Following this announcement, Nvidia shares traded 6% lower in after-hours trading on Tuesday, adding to the 17.3% loss experienced by Nvidia since the beginning of the year and as of the time of the writing (Wednesday, 16 April).

AMD Also Takes a Hit 

In addition to Nvidia, chipmaker rival AMD (AMD) saw its shares fall by 7% in after-hours trading yesterday. The drop followed an announcement from a US Commerce Department spokesperson stating that new licensing requirements would be imposed on the export of advanced chips—including Nvidia’s H20, AMD’s MI308, and similar models.

How Did Asian Shares React?

Asian markets opened lower on Wednesday, weighed down by the previous day’s negative market sentiment and developments. The MSCI Asia-Pacific index, excluding Japan, declined by 0.9%, ending a four-day streak of gains. Japan’s Nikkei dipped 0.5%, while China’s blue-chip stocks lost 0.6%. Hong Kong’s Hang Seng Index dropped 1.6%. In contrast, many Chinese semiconductor stocks showed strength. (Source: Yahoo Finance)

It will be interesting to see what else lies ahead for the markets as Trump’s tariff policy persists. 

Tariffs Cloud ASML’s Outlook 

Tech companies are not the only ones suffering from Trumponomics. Dutch chip maker ASML (ASML.AS) reported earnings on Wednesday, 16 April, and revealed that the tariffs are burdening its 2025-2026 outlook. Moreover, the company’s net booking came in below expectations in light of the trade war. 

As a key player in the global AI race, ASML produces the world’s most advanced EUV lithography machines used by chip designers like Nvidia and Apple. While AI remains the company's primary growth engine, it is also reshaping market dynamics, creating both opportunities and risks across its customer base, according to ASML executive Christophe Fouquet. 

For reference, in Q1 2025, the company reported net bookings of €3.9 billion ($4.4 billion), falling short of the €4.89 billion expected by analysts.

Still, only time will tell what lies ahead.

Conclusion 

As the US-China trade war escalates and export controls tighten, the global tech sector continues to feel the ripple effects. With industry giants like Nvidia, AMD, and ASML already showing signs of strain, the full impact of these sweeping policies may only be beginning to unfold. While AI remains a core growth driver, it also brings new risks in an increasingly fragmented and politically charged global market.

*Past performance does not reflect future results.