Trump Tightens Trade Restrictions: A Game-Changer for Global Markets

Since the start of the new week’s trading in financial markets, new trade measures and statements by President Donald Trump have taken center stage. Key among these was Trump’s announcement that he is moving forward with previously delayed tariff decisions.

Trump’s administration revealed plans to impose more restrictions on the semiconductor sector, with a report from Bloomberg suggesting these could target China and some other Asian nations.

Furthermore, Trump issued a directive limiting China’s ability to invest in various U.S. sectors, and his administration is considering additional tariffs on Chinese-made commercial ships. Trump also reaffirmed that tariffs on Canada and Mexico would be enacted without delay.

AI Concerns

Bloomberg reported that Trump plans to increase semiconductor restrictions on China, continuing efforts initiated by the Biden administration. U.S. officials are also working with Japan and the Netherlands to prevent technology transfer to China, which could impact the Chinese AI sector.

Trump’s administration is also exploring tighter export controls on Nvidia-produced chips to China, aiming to curb Beijing’s technological advancements.

China, through statements published in the semi-official Global Times, has firmly opposed these U.S. measures, warning that they could backfire.

Strategic Moves

Amid ongoing U.S. nominations for key federal positions, the administration is contemplating expanded restrictions on American investments in Chinese technologies, including semiconductors, AI, quantum computing, biotechnology, and space sectors.