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U.S. Tightens Chip Export Controls, Deepening Trade Rift with China

New restrictions on Nvidia and AMD chips underscore escalating U.S.-China tech conflict, triggering major market declines.

A sign for a Nvidia building is shown in Santa Clara, Calif., May 31, 2023.
A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 15, 2025. REUTERS/Brendan McDermid
Trader Peter Michael Tuchman works on the floor of the New York Stock Exchange during morning trading on April 15, 2025 in New York City.
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Overview

  • The U.S. Commerce Department implemented new export licensing requirements, restricting sales of Nvidia’s H20 and AMD’s MI308 chips to China.
  • Nvidia projects $5.5 billion in financial losses due to the export curbs, with its stock dropping over 5% in premarket trading, while AMD shares fell nearly 6%.
  • Analysts view these restrictions as a significant escalation in the U.S.-China tech battle, with broader implications for global trade relations.
  • Global markets reacted with sharp declines, including falling Wall Street futures and Asian and European indices, while safe-haven assets like gold surged to record highs.
  • Separately, President Trump ordered a probe into potential tariffs on critical minerals imports, further contributing to trade policy uncertainty.