Nvidia, TSMC Stocks Fell As Trump Hit Mexico, Canada, And China With Tariffs—But Top Analyst Sees Only ‘Limited’ Supply Chain Impact On Chips

Tech stocks tumbled on Monday after President Donald Trump imposed steep tariffs on imports from Canada, China, and Mexico, sparking fears of supply chain disruptions — yet Wedbush analyst Dan Ives says Nvidia Corporation NVDA and Taiwan Semiconductor Mfg. Co. Ltd. TSM won’t face immediate fallout.

What Happened: Trump’s tariffs, which include a 25% levy on imports from Mexico and Canada and a 10% tariff on Chinese goods, were set to take effect on Tuesday.

This move sparked concerns about potential retaliation affecting the tech sector. However, Ives said that the immediate impact on the semiconductor supply chain will be minimal.

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“We believe short-term supply chain disruptions for the chip ecosystem will be very limited as it relates to Nvidia, TSMC, and others with retaliatory measures from Beijing as limited in the near term,” Ives said.

He characterized the situation as part of a “bigger game of high-stakes poker” between the U.S. and China, suggesting that while tensions are rising, the immediate risk to Nvidia, TSMC, and other chipmakers remains contained.

Why It Matters: President Trump and the leaders of Mexico and Canada reached eleventh-hour agreements to delay the implementation of steep tariffs on exports to the U.S., reported the New York Times.

Meanwhile, a 10% tariff on Chinese imports remains scheduled to take effect at midnight. Trump will reportedly speak with Xi Jinping within the next 24 hours, though the exact timing of the call is uncertain.

However, earlier on Monday, the tariffs rattled semiconductor stocks.

Nvidia fell 2.84% to $116.66, Microsoft Corporation MSFT dropped 1% to $410.92, Apple Inc. AAPL declined 3.39% to $228.01, Intel Corporation INTC decreased 0.26% to $19.38, Super Micro Computer Inc. SMCI dropped 5.86%, Broadcom Inc. AVGO fell 1.60% and TSMC declined 4.55%, according to data from Benzinga Pro.

The U.S. Chamber of Commerce has warned that the tariffs could lead to major supply chain disruptions and rising costs for American businesses and consumers.

Photo by Ivan Marc via Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.