This week, President Donald Trump announced that his long-term strategy of imposing tariffs on goods not made in America is in effect, causing Nvidia — a US-based company that predominantly manufactures in Taiwan — to experience a sharp decline in its stock price.
The stock dropped 9% on Monday evening and 12% over the past week. This follows Trump’s confirmation that the 25% tariffs on goods from Canada and Mexico, along with a 10% tariff on goods from China, will be enforced. Nvidia’s market cap has plummeted from over $3 trillion to $2.73 trillion at the time of writing, marking one of the most significant downturns the stock has seen in recent months.
Trump’s cabinet initially proposed a rollout for these tariffs in February, which was subsequently paused until March 4. Many anticipated that the tariffs would be delayed until a trade agreement was established.
Taking the predicted course of these tariffs into account, analysts suggest they aim to increase the cost of imported goods, encouraging consumers to favor American-made products and pressuring non-American businesses to relocate their manufacturing to the US. Recently, Nvidia’s CEO, Jen-Hsun Huang, expressed his willingness to support Trump’s administration, stating, “I’d be delighted to go see him and congratulate him, and do everything we can to help this administration succeed.”
Additionally, TSMC revealed plans for a $100 billion investment in US production, including the construction of three new fabs.
Despite the stock dip, Nvidia is actively involved in a variety of markets besides gaming, with its processors being used in data centers, AI, and robotics. The stock remains 50% higher than it was a year ago and has experienced a 400% increase over the last two years. However, this latest drop marks its most severe decline since the launch of the DeepSeek R1 AI, which resulted in a $600 billion loss earlier this year.
This situation may affect consumer access to popular Nvidia graphics cards, which have been in limited supply even before the tariffs. Industry observers note that Trump’s tariffs could hinder availability and increase prices, significantly impacting consumers.
As AMD also relies on Taiwanese manufacturing, acquiring Radeon RX 9000 series graphics cards at MSRP may become increasingly difficult.
