On February 28, 2025, U.S. President Donald Trump confirmed that tariffs on Canada and Mexico will be implemented starting March 4. This announcement comes amidst rising tensions over trade, as Trump also threatened a 25% tariff on the European Union, which could lead to significant economic repercussions for the U.S. and its allies.
- Nvidia shares dropped 8.5% Thursday.
- Trump plans tariffs on Canada and Mexico.
- Jobless claims rose to 242,000 last week.
- Bitcoin fell nearly 25% from all-time high.
- Gold prices may reach $3,000 soon.
- Tariff threats could affect gold imports.
In response to these developments, Nvidia’s stock plummeted, losing $273 billion in market value after the company reported disappointing earnings. The potential for tariffs on chips from Taiwan, where Nvidia sources many of its components, raises further concerns for the tech giant.
The backdrop of these tariff announcements includes a notable rise in U.S. jobless claims, which reached 242,000 for the week ending February 22, exceeding analysts’ expectations. Major tech companies, including Google, have also begun laying off employees, indicating a broader impact on the industry that may be exacerbated by rising import costs due to tariffs.
Nvidia, a key player in the semiconductor industry, saw its shares drop 8.5% on Thursday, leading to a market capitalization of $2.94 trillion. This decline reflects investor anxiety regarding export controls and the potential for increased tariffs on chips manufactured in Taiwan. Should these tariffs be enacted, Nvidia’s financial outlook could worsen significantly.
U.S. markets reacted negatively to the tariff News, with the S&P 500 falling 1.59% and the Nasdaq Composite dropping 2.78%. Asian markets followed suit, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng Index both experiencing declines. The uncertainty surrounding Trump’s trade policies continues to create volatility in global markets.
Overall, the impending tariffs and their potential effects on trade relationships pose serious challenges for both the U.S. economy and companies like Nvidia, which rely heavily on international supply chains.
In summary, Trump’s announcement of tariffs on Canada and Mexico, along with threats to the EU, has led to significant market reactions and concerns over the future of major companies like Nvidia. The economic landscape may shift dramatically as these policies take effect.
