The Nvidia $NVDA (+0,22%) shares recovered after a sharp fall of 9% on Monday and rose by 1.7%. Despite the smouldering regulatory risks and the threat of tariffs, analysts remain optimistic. The new 25% tariffs on imports from Canada and Mexico and 10% on Chinese goods are casting a shadow over the markets. Even if semiconductors such as those from Nvidia are not directly affected, the associated price increase for data processing equipment that uses Nvidia's chips could impact demand for these products. A ray of hope in this situation is the news that Nvidia's partner Foxconn is building a large factory in Mexico for servers using Nvidia's Blackwell AI chips. Analysts from Citi, Bernstein and Wedbush see the current market situation as a real buying opportunity. Bernstein in particular emphasizes that Nvidia's sales in China account for less and less of total sales, which could mitigate the potential negative impact of future export controls.
In the US, the automotive industry is warning of drastic price increases of up to 25% due to the tariffs imposed by President Trump on imports from Canada and Mexico. John Bozzella, Executive Director of the Alliance for Automotive Innovation, makes it clear that all car manufacturers will be affected by these tariffs. These tariffs could significantly disrupt the integrated supply chain that has existed in North America for over 25 years. Many parts are transported across the border several times before they are finally assembled. Ford CEO Jim Farley has already warned of the devastating impact these tariffs could "tear a hole" in the US auto industry. The United Auto Workers welcome Trump's aggressive stance and see the possibility of tariffs being adjusted in April to help the working class. At the same time, the American International Automobile Dealers Association makes it clear that these tariffs could further drive up the prices of vehicles and parts.
Sources:
https://finance.yahoo.com/news/automakers-warn-trump-tariffs-hike-173401779.html