The News
Semiconductor giants Nvidia and ASML are already suffering the effects of US President Donald Trump’s unpredictable trade policies.
Trump had apparently agreed to allow Nvidia to export its most sophisticated models to China, following a meeting with the company’s CEO. But curbs have now been reinstated, leading Nvidia to record a $5.5 billion charge.
And ASML, which builds chipmaking machines, said orders were below expectations, blaming tariff uncertainty.
Trump’s three-month tenure has been marked by headspinning changes of direction, with further tariffs on chips looming.
There have already been 25 major announcements, which the Financial Times’ chief economics commentator argued was incompatible with stability. Unpredictable “mad kings,” Martin Wolf wrote, “generate waste, fear and pervasive uncertainty. These are enemies of prosperity.”