Trump’s trade war just got personal for Big Tech. The US has moved forward with fresh investigations that could lead to tariffs on semiconductors and pharmaceuticals — and Nvidia is already paying the price. The AI giant will take a massive $5.5 billion charge as its key H20 chip is blocked from China. With chipmakers like AMD and Broadcom also sliding, this could be the start of a major tech showdown.

🧠 Here’s What’s Going Down:

• The Trump administration is ramping up its trade crackdown — launching official probes into:

  • Semiconductors and chip equipment

  • Pharmaceuticals and drug ingredients

• These investigations are the first step toward new import tariffs, citing national security risks.

• Targets include all chips — from basic to advanced AI processors — and even drug ingredients that go into lifesaving medicines.

💥 New Bombshell: Nvidia Takes a $5.5 Billion Hit

• Nvidia shares tanked 6% after announcing it will write down $5.5 billion due to new US rules banning exports of its H20 AI chip to China.

• The H20 chip, key to China’s AI surge, was built to avoid previous export controls but is now caught in the crossfire.

• US officials say H20’s high-speed capabilities could help Chinese supercomputers, raising national security flags.

• No export licenses are currently approved — and the ban is indefinite.

🔍 What’s the H20?

• Nvidia’s most advanced AI chip legally sellable in China

• Optimized for AI inference (real-time AI results)

• Used by Chinese giants like Tencent, Alibaba, ByteDance

• Now under intense scrutiny from Washington

🔻 AI Chip Sector Gets Slammed

• After Nvidia’s bombshell:

  • AMD shares fell 7%

  • Broadcom dropped nearly 4%

• Analysts warn of a wider AI supply chain shock, especially with chips used in cloud computing, mobile devices, and smart infrastructure.

💊 On the Pharma Front…

• Trump’s other target: drug imports

• The US probe includes all finished medicines and active ingredients

• Industry giants like Merck, Eli Lilly, and Novartis face tough decisions: raise prices or slash R&D

• Novartis recently pledged $23B in US investments, but experts say that won’t offset damage if tariffs hit

🧨 The Bigger Picture

• The new probes come under Section 232, which means tariffs could roll out fast

• If implemented, tariffs could:

  • Raise medicine and electronics prices

  • Disrupt global supply chains

  • Slow down AI innovation

  • Hit tech stock valuations

• Drugmakers may scale back research, hurting innovation in the long run