Market Beats | Trump Administration Bars Nvidia H20 Chip Exports to China; China Sets Preconditions for Resuming Trade Talks With US; California Sues to Block Trump’s Tariffs; Trump Ally Bought Stocks Before Rally; US Retail Sales Surge in March; AMD Warns of $800 Million Charge Amid New Export Curb; Trump Tariffs Prompt Private Equity to Hit Pause on Deals

—— Trump Administration Bars Nvidia’s H20 Chip Exports to China; China Sets Preconditions for Resuming Trade Talks With US; California Sues to Block Trump’s Tariffs; Trump Ally Bought Stocks Before Rally; US Retail Sales Surge in March; AMD Warns of $800 Million Charge Amid New Export Curb; Trump Tariffs Prompt Private Equity to Hit Pause on Deals

1. Trump Administration Bars Nvidia’s H20 Chip Exports to China

President Donald Trump’s administration has barred Nvidia Corp. from selling its H20 chip to China, escalating the US-China technology standoff and delivering a major blow to Nvidia’s China-focused product strategy.

The US government informed Nvidia on Monday that the H20 chip — designed to comply with prior export restrictions — will now require a license for export to China “for the indefinite future.” In a regulatory filing, Nvidia said the decision stemmed from concerns that “the covered products may be used in, or diverted to, a supercomputer in China.”

As a result, Nvidia warned it will report approximately $5.5 billion in writedowns this quarter related to inventory and supply obligations tied to the H20 chip.

Nvidia’s shares fell about 6% in early US trading on the news, leading a broader selloff across the semiconductor sector. South Korean chipmakers Samsung Electronics Co. and SK Hynix Inc. dropped roughly 3%, while Advanced Micro Devices Inc. (AMD), Nvidia’s key rival in AI chips, also declined sharply.

Analysts said the move signals a further tightening of US restrictions on China’s access to high-end AI and supercomputing technology, underscoring growing national security concerns.

For Nvidia, the ruling challenges its long-standing strategy of relying on China as a major growth market and may force a significant restructuring of its global supply and sales plans.

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2. China Sets Preconditions for Resuming Trade Talks With US

China has outlined a set of conditions it wants met before agreeing to resume trade negotiations with President Donald Trump’s administration, according to a person familiar with Beijing’s internal thinking.

One key demand is that the US demonstrate greater respect by curbing disparaging remarks from cabinet members, the person said, requesting anonymity due to the sensitivity of the matter.

Additional conditions include a more consistent American policy stance, and a willingness to address Beijing’s concerns regarding US sanctions and its position on Taiwan. China is also seeking the appointment of a designated lead negotiator who has direct support from President Trump and can help craft a deal that both Trump and Chinese President Xi Jinping could sign during a future summit.

The fate of the global economy and financial markets hangs heavily on whether the world’s two largest economies can find a way to avoid a prolonged trade war. Since taking office, Trump has imposed sweeping 145% tariffs on most Chinese goods, prompting tit-for-tat retaliation from Beijing and severely straining bilateral ties.

Analysts say China’s conditions underscore both its desire to re-engage diplomatically and its firm stance on matters of national sovereignty and strategic interest. Whether a meaningful breakthrough is possible may depend on Washington’s willingness to recalibrate its approach to China.

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3. California Sues to Block Trump’s Tariffs

California Governor Gavin Newsom announced on Wednesday that the state is suing to stop President Donald Trump’s sweeping tariffs, mounting a major legal challenge to the president’s use of emergency powers to reshape global trade.

In a statement, Newsom’s office said California will file a lawsuit in San Francisco federal court seeking to block Trump’s application of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from China, Mexico, and Canada. The complaint alleges that the tariffs have caused significant harm to consumers and businesses in California, the world’s fifth-largest economy.

“President Trump’s unlawful tariffs are wreaking chaos on California families, businesses, and our economy — driving up prices and threatening jobs,” said Newsom, a Democrat widely seen as a likely contender in the 2028 presidential race.

Trump’s unprecedented use of IEEPA to enact tariffs has shaken global markets, stoked fears of a recession, and strained US relations with key trading partners. Legal experts say the California lawsuit may become a landmark case in testing the constitutional limits of presidential authority over economic policy.

Newsom and California Attorney General Rob Bonta are requesting an immediate court order to halt the implementation of the levies.

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4. Trump Ally Bought Stocks Before Rally

Representative Marjorie Taylor Greene, a Georgia Republican and close ally of President Donald Trump, sold US Treasuries and purchased stocks in Amazon.com Inc., Blackstone Inc., and Tesla Inc. just one day before Trump’s announcement of a 90-day pause on retaliatory tariffs triggered a sharp market rally.

According to a financial disclosure filed last week, Greene’s trades occurred over April 8 and 9. On the morning of April 9, Trump posted on social media that it was a “great time to buy.” Just four hours later, he announced the suspension of tariffs, sending the S&P 500 index surging 9.5% — its biggest one-day gain since 2008.

The filing reveals that Greene, one of the first members of Congress to report trades since Trump’s tariff announcement, has been an active trader this year, with eight disclosures so far. While she’s consistently favored technology and semiconductor stocks, this marks the first time she’s sold Treasuries after purchasing over $500,000 worth of US government securities since the start of 2025.

Democratic lawmakers have called for investigations into whether individuals connected to the Trump administration may have profited from advance knowledge of policy decisions, including the tariff suspension.

The timing of Greene’s trades is likely to intensify scrutiny over potential conflicts of interest and insider trading risks involving elected officials.

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5. US Retail Sales Surge in March

US retail sales posted their strongest monthly gain in over two years in March, fueled largely by a surge in auto purchases as consumers rushed to beat looming tariffs on finished vehicles and car parts.

Retail sales rose 1.4% last month, the most since early 2023, according to Commerce Department data released Wednesday. Excluding autos, sales still climbed a solid 0.5%.

The spike suggests that many Americans are buying cars ahead of President Donald Trump’s 25% tariffs on imported vehicles, which are expected to begin affecting retail prices in the coming weeks. Tariffs on auto parts are set to take effect no later than May 3. Industry analysts estimate the duties could raise car prices by thousands of dollars, though Trump is reportedly weighing temporary exemptions.

While autos led the gains — marking the biggest increase in two years — the rise in spending was broad-based. Eleven of the report’s 13 categories recorded gains, including building materials, sporting goods, and electronics. That suggests consumers may also be preemptively buying other goods at risk of new tariffs.

Analysts cautioned that while the surge in retail spending reflects strong short-term demand, it may prove temporary. Once tariffs take effect and prices rise, consumer spending could cool, potentially slowing overall economic growth in the coming quarters.

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6. AMD Warns of $800 Million Charge Amid New Export Curb

Advanced Micro Devices Inc. (AMD) said it expects to take a charge of up to $800 million after the Trump administration imposed new restrictions on semiconductor exports to China, targeting the company’s AI-focused chips.

In a filing with the US Securities and Exchange Commission on Wednesday, AMD said the charge stems from a preliminary assessment of the newly required export license for its MI308 products — advanced chips designed for AI and high-performance computing applications.

The company said it plans to seek export licenses to continue selling to Chinese customers, but cautioned that there is no guarantee such licenses will be granted.

The announcement follows a similar disclosure from Nvidia Corp. on Tuesday, in which the chipmaker said it would write down $5.5 billion in inventory and related obligations after its China-targeted H20 chip became subject to the same licensing restrictions.

AMD shares fell as much as 8.1% in early New York trading on Wednesday, while Nvidia’s stock dropped as much as 7%.

The Trump administration is intensifying curbs on China’s access to cutting-edge semiconductors, expanding on export controls initiated under the Biden administration, which cited national security concerns tied to geopolitical competition.

While AMD has historically held a smaller share of the data center GPU market — dominated by Nvidia’s over 90% market share, according to IDC — the financial impact of the new restrictions remains significant.

Industry analysts warn that the deepening export curbs may further fracture the global semiconductor supply chain and add long-term uncertainty to US chipmakers’ China-related revenue streams.

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7. Trump Tariffs Prompt Private Equity to Hit Pause on Deals

U.S. stocks faced a downturn on Friday afternoon, closing in negative territory as the automotive and Chinese sectors led the fall. This decline was primarily driven by an announcement from the White House confirming President Donald Trump’s intention to proceed with significant tariffs on imports from Mexico, Canada, and China starting Saturday.

Specifically, Trump’s administration plans to impose a 25% tariff on goods from Mexico and Canada, and a 10% tariff on Chinese imports. This news negatively impacted investor sentiment, particularly affecting a UBS Group AG basket of stocks deemed at risk from these tariffs, which plunged by 3.7%. Additionally, despite an initial gain, the S&P 500 Index ended the day down by 0.5%.

The financial markets reacted swiftly, with the Bloomberg Dollar Spot Index reaching a session high, indicating a flight to safety among investors. Meanwhile, the Cboe Volatility Index (VIX), often referred to as the “fear gauge,” increased to just over 16, reflecting growing uncertainty and risk aversion among traders.

The ongoing threat of tariffs has been a significant concern for U.S. equity markets since Trump’s election victory in November. Analysts and strategists have cautioned that such high levies could spark inflationary pressures, potentially leading to broader economic disruptions and negatively impacting stock valuations.

Given this backdrop, sectors such as automotive, technology, and manufacturing, which have substantial exposure to international trade, are particularly vulnerable to the effects of prolonged trade wars and the imposition of tariffs.

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