Semiconductor stocks headed lower Wednesday after the White House released a brand-new list of tariffs on $0 billion of Chinese goods on Tuesday evening, as President Donald Trump continued to broaden the trade war with Beijing.
Nvidia, Advanced Micro Devices along with Broadcom were among those falling more than 1 percent in trading. Each company logs substantial annual revenue through China connected to its chip manufacturing business. One exchange traded fund, the VanEck Vectors Semiconductor ETF, can be down nearly 2 percent, on pace for its worst daily performance in two weeks.
The brand-new list appears to target China’s important manufacturing export industries. This particular includes electronics, textiles, metal products along with auto parts. Under those industries, specific products such as refrigerators, bags, cotton along with Chinese steel along with aluminum products are on the list.
Semiconductors may be the sector most affected by rising trade tensions between the U.S. along with China. A Goldman Sachs list of the top 20 companies with the highest revenue exposure to China can be dominated by technology chip suppliers in which send products to manufacturers in China.
Trump’s brand-new tariffs will not go into effect immediately although will undergo a two-month review process, with hearings Aug. 20-23.The list of comes after warnings by Trump in which he may implement tariffs on at least $500 billion in Chinese goods should Beijing retaliate against the $34 billion in U.S. tariffs in which kicked in Friday. Despite the president’s threats, China implemented retaliatory tariffs on the U.S. shortly after. China has again accused the U.S. of bullying along with warned This particular would likely hit back after the Trump administration raised the stakes in their trade dispute.