Squawk on the Street SOTS 2nd Hour: Trump Tariffs Latest: Nvidia’s $5.5B Hit, Rare Earth Metals Probe, and More 04/16/25
Apr 16, 2025
Stocks are feeling the pressure as Nvidia grapples with a hefty $5.5 billion charge from export restrictions, alongside AMD facing an $800 million loss. The podcast dives into the turbulent U.S.-China trade dynamics and the impact of tariffs on semiconductor stocks. United Airlines shares insights on consumer behavior amidst rising oil prices, while retail sales data creates waves of uncertainty. Additionally, listeners get a glimpse into the ongoing antitrust case against Meta, with legal challenges shaking up the market.
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Nvidia's $5.5B Export Hit
- Nvidia faces a $5.5 billion charge due to new US export restrictions on H20 AI chips designed for China.
- This marks a significant policy reversal with potential indefinite licensing restrictions, impacting Q1 earnings and chip exports.
New Critical Minerals Tariff Probe
- Trump administration launched a national security probe on critical minerals under Section 232, potentially leading to tougher, long-lasting tariffs.
- This adds to ongoing tariff tensions and confusion about the total tariff rates on Chinese goods.
Tariffs Pressure Market Estimates
- Citi lowered 2025 S&P target and earnings estimates citing tariff uncertainty and macroeconomic slowing.
- Tariff volatility especially influences consumer discretionary and tech hardware sectors causing wider earnings outcome variability.