Trump's Chip Restrictions May Impact Global Market

The Trump administration plans to intensify semiconductor restrictions on China, continuing efforts initiated by the Biden administration to limit Beijing's technological capabilities. U.S. officials have engaged with Japanese and Dutch counterparts to discuss restricting companies like Tokyo Electron and ASML from maintaining semiconductor equipment in China. Additionally, the administration seeks to tighten controls on the export of Nvidia chips to China. In response, China's foreign ministry warned that these U.S. actions could backfire and impede the global semiconductor industry's development. This move is part of the broader U.S.-China trade tensions, which have been reignited with Trump's return to office, marked by proposed 60% tariffs on Chinese goods. These measures signify a continuation of the trade war dynamics, potentially impacting global supply chains and inflation.