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Global chipmakers feel the pinch of Trump’s shifting trade policy

Global chipmakers feel the pinch of Trump’s shifting trade policy
An NVIDIA logo is displayed on a building in Taipei, Taiwan, on April 16, 2025. (REUTERS)
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Updated 17 April 2025

Global chipmakers feel the pinch of Trump’s shifting trade policy

Global chipmakers feel the pinch of Trump’s shifting trade policy
  • Nvidia has warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China
  • Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market

Global chip stocks were battered on Wednesday on fresh evidence of how US President Donald Trump’s shifting trade policy was complicating the outlook for semiconductor and computing giants, including AI pioneer Nvidia and its rival AMD.
Attempts to reorient global trade through tariffs and export curbs have started to show the effect as Nvidia warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China, while Dutch chip-making tools giant ASML raised doubts about its outlook.
The US restriction, which also hit the MI308 processor of Advanced Micro Devices, marked the latest blow for the AI chip trade that is losing steam after a two-year rally as tariff threats and fears over Big Tech’s spending weigh on sentiment.
Nvidia shares closed down nearly 7 percent on Wednesday, with the company losing more than $148 billion in market value. AMD fell 5.8 percent as it warned of a $800 million hit from the latest curb, while AI-related chip stocks including Arm, Broadcom and Micron dropped between 2.5 percent and 4.6 percent.
Nvidia said on Wednesday that it follows the US government’s directions on where it can sell its chips after the US Commerce Department announced on Tuesday it was issuing new export licensing requirements for Nvidia’s H20 chips.
“The US government instructs American businesses on what they can sell and where — we follow the government’s directions to the letter,” Nvidia said.
“The technology industry supports America when it exports to well-known companies worldwide — if the government felt otherwise, it would instruct us,” the company added.




Global stock markets mostly retreated Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world's biggest economies. (AFP)

Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market, but the country remains a key source of revenue.
“The US export restrictions on Nvidia’s H20 chips highlight the growing geopolitical uncertainty enveloping the tech and semiconductor sectors, particularly under Trump-era-style policy reversals,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
“This unpredictability rattles businesses and investment markets, as evidenced by Nvidia’s selloff this morning and broader pressure across chip stocks.”
Nvidia drew over 13 percent of its sales, or about $17 billion, from China in its last financial year, although that was down from 21 percent in fiscal 2023. For AMD, China was its second-largest market last year, accounting for more than 24 percent of total sales.
“The H20 portion was about $12 billion or so (of the total China revenue), roughly about 30 cents of earnings per share, not trivial but not enormous in the grand scheme of things,” Bernstein analyst Stacy Rasgon said.
“H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei.”
Rasgon said the move may have surprised many investors as shares had surged nearly 18 percent last week, partly due to a report that the Trump administration planned to back off from such a curb after CEO Jensen Huang attended a Mar-a-Lago dinner.
The company had earlier this week unveiled plans to build AI servers worth as much as $500 billion in the US over the next four years, a move largely seen as an overture to Trump.
Trump has for now exempted semiconductors and some other electronics from his tariffs, but he has warned that sector-specific levies will be announced in the coming weeks.
Such tariffs could cost US semiconductor equipment makers more than $1 billion a year, Reuters reported on Tuesday.

NVIDIA fallout
News of the latest export curb on Nvidia sparked a selloff in chip companies and its suppliers across the globe.
In South Korea, Samsung closed down about 3 percent, while SK Hynix closed 4 percent lower.
European chipmakers ASM International and Infineon Technologies fell more than 2 percent, while Japanese chip-testing equipment maker Advantest — an Nvidia supplier — was the Nikkei’s second-worst performer with a 5 percent tumble.

Still, some analysts said Nvidia’s overall sales have continued to surge even as the China contribution slows while chip demand remains strong from big cloud companies.
“While we acknowledge the likely impact to near-term numbers, we would stress that Blackwell shipments to core hyperscale customers remains the driver of fundamentals,” TD Cowen analysts said, referring to Nvidia’s latest line of AI systems.


Police detain 8 people after anti-migrant clashes in Spanish town

Police detain 8 people after anti-migrant clashes in Spanish town
Updated 14 July 2025

Police detain 8 people after anti-migrant clashes in Spanish town

Police detain 8 people after anti-migrant clashes in Spanish town

MADRID: Eight people have been detained by police in Spain in relation to violent clashes that erupted between far-right groups, local residents and migrants in a southeastern town over the weekend, officials said on Monday.
Clashes in Torre-Pacheco in the Murcia region took place on Saturday night after an elderly resident was beaten up earlier in the week by unknown assailants, which led to a call by far-right groups to seek retribution on the area’s large migrant community.
The motivation for the initial attack was not clear.
Among those detained were two people allegedly linked to the attack on the elderly man and several others in relation to the weekend clashes, Mariola Guevara, the central government’s representative in Murcia, said Monday on X.
Six Spaniards and one North African resident were detained for the assaults, damages and disturbances, Guevara said. The two others detained had helped the perpetrator of the attack on the elderly man, she said.
A major police presence was moved into Torre-Pacheco, which has a population of roughly 42,000. About a third of its residents are of foreign origin, according to local government figures.
Large numbers of migrants also work in the surrounding area as day laborers in agriculture, a major driver of the regional economy.


German doctor goes on trial for 15 murders

German doctor goes on trial for 15 murders
Updated 14 July 2025

German doctor goes on trial for 15 murders

German doctor goes on trial for 15 murders
  • Palliative care specialist alleged to have killed 12 women and three men between September 2021 and July 2024 while working in Berlin
  • The case recalls that of notorious German nurse Niels Hoegel, who was handed a life sentence in 2019 for murdering 85 patients

BERLIN: A German doctor went on trial Monday accused of killing 15 patients with lethal injections and acting as “master of life and death” over those in his care.

The 40-year-old palliative care specialist, named by German media as Johannes M., is alleged to have killed 12 women and three men between September 2021 and July 2024 while working in Berlin.

The doctor is accused of injecting the victims, aged between 25 and 94, with deadly cocktails of sedatives and in some cases setting fire to their homes in a bid to cover up his crimes.

The accused had “visited his patients under the pretext of providing medical care,” prosecutor Philipp Meyhoefer said at the opening of the trial at the state court in Berlin.

Johannes M. had organized “home visits, already with the intention of killing” and exploited his patients’ trust in him as a doctor, Meyhoefer said.

“He acted with disregard for life... and behaved as the master of life and death.”

A co-worker first raised the alarm over Johannes M. last July after becoming suspicious that so many of his patients had died in fires, according to Die Zeit newspaper.

He was arrested in August, with prosecutors initially linking him to four deaths.

But subsequent investigations uncovered a host of other suspicious cases, and in April prosecutors charged Johannes M. with 15 counts of murder.

A further 96 cases were still being investigated, a prosecution spokesman said, including the death of Johannes M.’s mother-in-law.

She had been suffering from cancer and mysteriously died the same weekend that Johannes M. and his wife went to visit her in Poland in early 2024, according to media reports.

The suspect reportedly trained as a radiologist and a general practitioner before going on to specialize in palliative care.

According to Die Zeit, he submitted a doctoral thesis in 2013 looking into the motives behind a series of killings in Frankfurt, which opened with the words “Why do people kill?”

In the charges brought against Johannes M., prosecutors said the doctor had “administered an anesthetic and a muscle relaxant to his patients... without their knowledge or consent.”

The relaxant “paralyzed the respiratory muscles, leading to respiratory arrest and death within minutes.”

In five cases, Johannes M. allegedly set fire to the victims’ apartments after administering the injections.

On one occasion, he is accused of murdering two patients on the same day.

On the morning of July 8, 2024, he allegedly killed a 75-year-old man at his home in the Berlin district of Kreuzberg.

“A few hours later” he is said to have struck again, killing a 76-year-old woman in the neighboring Neukoelln district.

Prosecutors say he started a fire in the woman’s apartment, but it went out.

“When he realized this, he allegedly informed a relative of the woman and claimed that he was standing in front of her flat and that nobody was answering the doorbell,” prosecutors said.

In another case, Johannes M. “falsely claimed to have already begun resuscitation efforts” on a 56-year-old victim, who was initially kept alive by rescuers but died three days later in hospital.

Prosecutors said he had “no motive beyond killing” and are seeking a life sentence.

The case recalls that of notorious German nurse Niels Hoegel, who was handed a life sentence in 2019 for murdering 85 patients.

Hoegel, believed to be modern Germany’s most prolific serial killer, murdered hospital patients with lethal injections between 2000 and 2005, before he was eventually caught in the act.

More recently, a 27-year-old nurse was given a life sentence in 2023 for murdering two patients by deliberately administering unprescribed drugs.

In March, another nurse went on trial in Aachen accused of injecting 26 patients with large doses of sedatives or painkillers, resulting in nine deaths.

Last week, German police revealed they are investigating another doctor suspected of killing several mainly elderly patients.

Investigators are “reviewing” deaths linked to the doctor from the town of Pinneberg in northern Germany, just outside Hamburg, police and prosecutors said.


EU climate VP seeks ‘fair competition’ with China on green energy

EU climate VP seeks ‘fair competition’ with China on green energy
Updated 14 July 2025

EU climate VP seeks ‘fair competition’ with China on green energy

EU climate VP seeks ‘fair competition’ with China on green energy
  • Deep frictions exist over economic relations between the 27-nation bloc and Beijing

BEIJING: The European Union is seeking "fair competition" with China and not a race to the bottom in wages and environmental standards, the bloc's vice president for the clean transition told AFP on Monday.
Deep frictions exist over economic relations between the 27-nation bloc and Beijing.
Brussels is worried that a manufacturing glut propelled by massive state subsidies could add to a yawning trade deficit and result in a flood of cheap Chinese goods undercutting European firms.
Speaking during a visit to Beijing ahead of a major EU-China summit in the city this month, Teresa Ribera dismissed China's claims that the bloc was engaging in "protectionism".
"We Europeans don't want to go down a race towards low incomes, lower labour rights or lower environmental standards," said Ribera, who also serves as the bloc's competition chief.
"It is obvious that we could not be in a good position if there could be an ... over-flooding in our markets that could undermine us with prices that do not reflect the real cost," she said.
The EU imposed extra import taxes of up to 35 percent on Chinese electric vehicle imports in October and has investigated Chinese-owned solar panel manufacturers.
Asked whether EU moves against Chinese green energy firms could harm the global transition to renewables, Ribera said: "It is fair to say that, yes, we may benefit in the very short term."
However, she also warned "it could kill the possibility" of long-term investment in the bloc's future.

Ribera's visit comes as Beijing seeks to improve relations with the European Union as a counterweight to superpower rival the United States, whose President Donald Trump has disrupted the global order and pulled Washington out of international climate accords.
"I don't think that we have witnessed many occasions in the past where a big economy, a big country, decides to isolate in such a relevant manner," she told AFP.
"It is a pity.
"The Chinese may think that the United States has given them a great opportunity to be much more relevant in the international arena," Ribera said.
The visit also comes as the bloc and the United States wrangle over a trade deal. Trump threw months of negotiations into disarray on Saturday by announcing he would hammer the bloc with sweeping tariffs if no agreement was reached by August 1.
Ribera vowed on Monday that the EU would "defend the interests of our companies, our society, our business".
Asked if a deal was in sight, she said: "Who knows? We'll do our best."
However, she insisted that EU digital competition rules -- frequently condemned by Trump as "non-tariff barriers" to trade -- were not on the table.
"It's a question of sovereignty," Ribera said.
"We are not going to compromise on the way we understand that we need to defend our citizens and our society, our values and our market."


Father of American man slain by Israeli settlers tells Arab News US officials do not care

Father of American man slain by Israeli settlers tells Arab News US officials do not care
Updated 14 July 2025

Father of American man slain by Israeli settlers tells Arab News US officials do not care

Father of American man slain by Israeli settlers tells Arab News US officials do not care
  • Sayfollah Musallet was beaten to death on his family’s land in the West Bank
  • ‘Where is the outcry from America for an American? We need justice now’

CHICAGO: Kamel Musallet, the father of a 20-year-old American citizen slain by Israeli settlers on Friday, told Arab News that US officials should treat his son’s killing “the same way they’d treat the murder of any American in any country.”

Sayfollah Musallet was beaten to death by settlers on land the family owns outside the Palestinian village of Al-Mazra’a Ash-Sharqiya in the occupied West Bank.

The family are American citizens of Palestinian heritage who have lived in Port Charlotte, Florida, most of their lives.

Sayfollah Musallet, who was born and raised in Florida, went to see family in Al-Mazra’a Ash-Sharqiya when he was confronted by “gangs of settlers” on their nearby land.

Kamel Musallet said he has only received condolences from “someone” at the US Embassy in Jerusalem, but not from any American officials in the US. 

“Where is the concern? My son is an American,” he added, describing him as “a kind person, a good person.”

He said Israeli soldiers prevented family and friends from reaching his son, and medical personnel from treating him.

“He was there, injured, dying, for nearly three hours … The settlers killed him and nothing has been done,” he added.

“Settlers have been going to Palestinian-owned lands randomly attacking any Palestinians they see, trying to steal these lands.

“They’re trying to put tents up on these lands to create new settlements, destroying olive trees and killing farm animals … We’ve asked for protection but have gotten nothing … They’ve been doing this for years.”

He added: “My whole family is American. Who is speaking up in America for our rights, our lives? Where is the outcry from America for an American? We need justice now.”

He said his son had been running an ice cream store that the family opened a year before in Tampa, Florida.

“Sayfollah was such a kind soul, a hard worker. I'm an entrepreneur, so he wanted to be like me … He left a positive impression on everyone he met.”


Trump envoy arrives in Kyiv as US pledges Patriot missiles to Ukraine

Trump envoy arrives in Kyiv as US pledges Patriot missiles to Ukraine
Updated 14 July 2025

Trump envoy arrives in Kyiv as US pledges Patriot missiles to Ukraine

Trump envoy arrives in Kyiv as US pledges Patriot missiles to Ukraine
  • Donald Trump last week teased that he would make a ‘major statement’ on Russia on Monday
  • US leader made quickly stopping the Russia-UKraine war one of his diplomatic priorities

KYIV: US President Donald Trump’s special envoy to Ukraine and Russia, retired Lt. Gen. Keith Kellogg, arrived in Kyiv on Monday, a senior Ukrainian official said, as anticipation grew over a possible shift in the Trump administration’s policy on the more than three-year war.

Trump last week teased that he would make a “major statement” on Russia on Monday. Trump made quickly stopping the war one of his diplomatic priorities, and he has increasingly expressed frustration about Russian President Vladimir Putin’s unbudging stance on U.S-led peace efforts.

Putin “talks nice and then he bombs everybody,” Trump said late Sunday, as he confirmed the US is sending Ukraine badly needed US-made Patriot air defense missiles to help it fend off Russia’s intensifying aerial attacks.

Russia has spread terror in Ukrainian cities, including the capital, Kyiv, with hundreds of drones and cruise and ballistic missiles that Ukraine’s air defenses are struggling to counter. June brought the highest monthly civilian casualties of the past three years, with 232 people killed and 1,343 wounded, the UN human rights mission in Ukraine said Thursday. Russia launched 10 times more drones and missiles in June than in the same month last year, it said.

That has happened at the same time as Russia’s bigger army is making a new effort to drive back Ukrainian defenders on parts of the 1,000-kilometer frontline.

A top ally of Trump, Republican Sen. Lindsey Graham of South Carolina, said Sunday that the conflict is nearing an inflection point as Trump shows growing interest in helping Ukraine fight back against Russia’s full-scale invasion. It’s a cause that Trump had previously dismissed as being a waste of US taxpayer money.

“In the coming days, you’ll see weapons flowing at a record level to help Ukraine defend themselves,” Graham said on CBS’ “Face the Nation.” He added: “One of the biggest miscalculations (Russian President Vladimir) Putin has made is to play Trump. And you just watch, in the coming days and weeks, there’s going to be a massive effort to get Putin to the table.”

Also, NATO Secretary-General Mark Rutte was due in Washington on Monday and Tuesday. He planned to hold talks with Trump, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, as well as members of Congress.

Talks during Kellogg’s visit to Kyiv will cover “defense, strengthening security, weapons, sanctions, protection of our people and enhancing cooperation between Ukraine and the United States,” said the head of Ukraine’s presidential office, Andrii Yermak.

“Russia does not want a cease fire. Peace through strength is President Donald Trump’s principle, and we support this approach,” Yermak said.

Russian troops conducted a combined aerial strike at Shostka, in the northern Sumy region of Ukraine, using glide bombs and drones early Monday morning, killing two people, the regional prosecutor’s office said. Four others were injured, including a 7-year-old, it said.

Overnight from Sunday to Monday, Russia fired four S-300/400 missiles and 136 Shahed and decoy drones at Ukraine, the air force said. It said that 61 drones were intercepted and 47 more were either jammed or lost from radars mid-flight.

The Russian Defense Ministry, meanwhile, said its air defenses downed 11 Ukrainian drones over Russian regions on the border with Ukraine, as well as over the annexed Crimea and the Black Sea.