Shares of Nvidia Corp, a leader in the chip manufacturing industry, experienced a significant decline of over 4% before the US stock market opened on April 4, 2025. This drop comes in response to China’s announcement of a 34% additional tariff on all imports from the United States, marking a notable escalation in trade tensions.
Impact on Nvidia and Other Tech Giants
In the pre-market trading session, Nvidia’s stock slid 6.2%, hitting $95.80 at 7:30 AM EDT, and continued to fall to around $97 by 8:05 AM EDT. The company’s shares faced a 7.8% decrease, finishing at $101.80 in the previous trading session, down from $110.42.
- Nvidia’s High Exposure: The downturn is largely attributed to Nvidia’s substantial manufacturing footprint in China.
- Apple Also Affected: Similarly, Apple Inc. saw its stock dip by 3.8%, trading at $195.43, compared to $203.19 from the prior close.
China’s Tariff Strategy
On April 4, China declared a substantial 34% tariff on US imports as a retaliatory measure against tariffs imposed by US President Donald Trump. The Chinese Commerce Ministry stated that these tariffs are intended to protect national security and fulfill international obligations, including non-proliferation efforts.
- Effective Date: These tariffs will take effect on April 10, 2025.
Broader Market Reactions
The effects of China’s tariff announcement were felt across the US markets. By April 4, Dow Jones Industrial Average (DJIA) futures plummeted by more than 1,500 points, signaling investor anxiety over escalating trade disputes.
- Market Performance:
- DJIA: Closed down 3.98% at 40,545.93 points, a stark drop from 42,225.32.
- S&P 500: Fell 4.84%, closing at 5,396.52 points.
- Nasdaq: Experienced a 5.97% decrease, ending at 16,550.61 points.
Conclusion
As the trade war intensifies, companies like Nvidia and Apple are bracing for potential challenges ahead. The market reaction reflects widespread concern about how these tariffs could affect earnings and supply chains. Investors are keeping a close watch on developments, as further fluctuations in stock prices are anticipated in the coming weeks. For more insights, explore our coverage on the implications of trade policies on the tech industry.
