Donald Trump’s tariff policy on imported goods seems more like a political thriller than a well-crafted economic strategy. The tariffs, trolled by social media users for being generated by ChatGPT, take tidal shifts every other day. The thriller began with Liberation Day Tariffs on US trading partners that baffled every stock-market investor. This was followed by a 90-day ‘relief rally’, excluding China which retaliated with reciprocal tariffs. Later on, Trump exempted smartphones, computers, and some electronic devices. However, in the next breath, he announced no one would be off the hook and the administration is looking for a national security tariff investigation. 

Economists, strategists, and analysts are all perplexed by Trump’s end goal. If Trump’s goal is to  ‘Make America Great Again’,  how does America’s globally integrated tech industry fit into that vision? Against the backdrop of this ongoing tariff situation, ‘Nvidia’, a multinational graphic and semiconductor chip manufacturer and a frontrunner in the AI technology boom is a particularly relevant case study. 

Nvidia Ranked No.1 Semiconductor Company 

Starting with the vision of bringing 3D graphics to the gaming and multimedia market, Nvidia debuted on April 5, 1993. Over thirty-two years, the company evolved to Omnivers, providing AI services to hardware and software companies. In 2024, the company overtook Samsung Electronics and Intel in the semiconductor industry. Meanwhile,  Nvidia’s unbeatable Q4 FY2025 results showed a 78% annual revenue increase, reminding California Golden Rush. 

Beating odds like DeepSeeks’s challenge to produce chatbots using cheaper chips and reducing the overall cost of AI chatbots, the company was strategically engaging with Google, TSMC, and OpenAI when Trump happened. 

Nvidia Stock Declines After Tariffs 

Against the protectionist move by Trump, Nvidia’s stock experienced a significant decline, falling 30% from its November 2024 peak of $153, resulting in a loss of around $1.1 trillion in market value. The company’s reliance on its deeply integrated supply chain in Southeast Asia,  including China and Taiwan, made it particularly susceptible.  This stock decline also broadly reflected the vulnerability of even the most prominent tech companies to abrupt trade policy by President Trump. 

Trump’s Policy on Semiconductors: Implications for Nvidia 

Trump’s tariff policy gave partial relief to the semiconductor industry by exempting semiconductors and integrated circuits in their raw form. The real issue arises with the end products like smartphones, tablets, computers, and networking equipment that incorporate these semiconductors. These final tech gadgets face significant price hikes due to tariffs, thereby affecting sales volumes and profit margins. Nvidia being the leading semiconductor chip supplier traps in this cycle. Moreover, the US-China reciprocal tariff war made the company’s future obscure as Nvidia has deeply integrated chip supply-chain infrastructure in China. 

Nvidia Stocks Stabilize

As of April 11, Nvidia stocks showed a small but positive movement. The stock rose by $0.52, or 0.48% reaching $108.09 in pre-market trading. This slight gain followed a rather steady session on April 10, where the stock closed at $107.57. The flat performance reflected broader uncertainty in the tech market with many investors avoiding big moves while waiting for important updates. This stability reflects investors’ optimistic perception about the company’s continued AI spending. Moreover, it reflects the growing confidence in NVIDIA’s upcoming Q1 earnings, which are expected later this month. Nevertheless, investors are hopeful that major companies like Amazon and Microsoft might soon upgrade their data centers, which would be a boost for NVIDIA’s data center business.

Trump Gave a Temporary Exemption to Smartphones and Computers 

Complying with an unscripted script of Dold Trump’s political thriller, the US President announced temporary exemption to smartphones, computers, and some electronics. The move gave a silver lining to tech companies and stock investors, desperately waiting for these exemptions. As Nvidia was already regaining its toppled position in the stock market, these exemptions further cleared the doubts of investors. Notably, Trump exempted Apple from tariffs during his first term after escalating trade war with China. 

What is Next for Nvidia? 

Analysts like Margan Stanley and Jim Carner predicted an optimistic landscape for Nvidia, considering the company’s strategic investment in AI. Moreover, the company is also planning to invest in quantum computing through the Open Quantum Computing Lab in Boston, adding another opportunity to the company’s growth. Though the company tumbled with Trump’s tariffs, it would absorb the shocks unless there is a global recession. Lastly, to make America Great Again, the country cannot lose its fundamental principles that led to its first industrial boom, i.e., laissez-faire economic approach and technological revolution.