The Trump administration has been advocating for additional tariffs of 25% on Canada and Mexico and 10% on China. Now, it is also considering tariffs on semiconductors, sending NVIDIA’s stock tumbling nearly 3%.
On Monday, NVIDIA shares dropped 2.84% on the New York Stock Exchange, closing at $116.66. This reduced the company’s market capitalization to $285.7 billion.
Bloomberg News reported that the administration is weighing country-specific tariffs and product-specific levies, particularly targeting electronics such as semiconductors and smartphones.
With a significant portion of its revenue coming from China, NVIDIA has already been under pressure from the administration’s proposed 10% tariff on Chinese imports.
Analysts warn that additional tariffs on semiconductors could have an even harsher impact.
NVIDIA is especially vulnerable as it outsources most of its chip production to Taiwan’s TSMC and other manufacturers. If semiconductor tariffs are enforced, the company could face a double blow.
This growing concern likely contributed to Wednesday’s sharp drop in NVIDIA’s stock, which has plunged 15% over the past month.