Nvidia provides for billionaire damage with new restrictions on China, while Trump’s trade war exposes the fragility of global technology chains
Six months ago, Nvidia was the pride of the US economy: billionaires, cutting -edge technology and charismatic CEO Jensen Huang, recognizable for his iconic leather coats. Today, the company has become a warning about the risks of President Donald Trump’s aggressive trade policy. Last Wednesday (16), the chip manufacturer warned about a loss of $ 5.5 billion due to export restrictions to China.
Huang rushed to the Asian country trying to minimize damage, while the US Congress began investigations. Nvidia’s actions plummeted, dragging other technology giants – a clear sign that the sector faces unprecedented turmoil because of the trade war.
Three alerts that the NVIDIA crisis reveals
1. The myth of technology without borders
Despite the perception that the digital world does not know barriers, the infrastructure behind it depends on “most complex supply chains in history,” as Chris Miller, professor at Tufts University explained. No country dominates all links in this current: Japan leads wafers production (56%), the US controls 96% of electronic design software, Taiwan manufactures 95% of advanced chips and China processes 90% of essential minerals.
2. US unpreparation
The Trump administration underestimated the domino effect by breaking these chains. When China retaliated with restrictions on the export of seven critical minerals, the US turned to a disadvantage. While Japan reduced its Chinese dependence from 90% to 58% after similar crisis in 2010, US stocks – including military – last only months. Alternative projects, such as sea bottom mining, can take years, leaving the US vulnerable.
3. The Chinese strategic advantage
China has been acting with “war mentality” for years, while the US private sector still operates in “Peace Mode.” This asymmetry was clear in the speed with which Beijing retaliated, placing companies like Nvidia on the line of fire. Analysts warn that the worst may be coming to the technology sector.
A shot in the foot?
Despite the discourse of figures such as Peter Navarro on “reindustrialization”, imposing fares without strategic planning proves to be a Crasso error-especially in vital sectors as semiconductors. Trump, known for his pragmatism, can retreat. But the current lesson is clear: in this trade war, the US is still several steps behind China.
With information from Financial Times*
Source: https://www.ocafezinho.com/2025/04/20/chips-guerra-e-trump-derrubam-um-gigante-do-vale-do-silicio/
