[Text/Observer Network Chen Sijia] "The current US trade policy is no different from the scorched earth policy in military terms." On April 20, CNBC reported that President Trump's insistence on provoking a "tariff war" and strengthening trade restrictions on China will severely damage American tech companies like Apple and Nvidia, which is not conducive to the interests of the United States itself.
CNBC host and former hedge fund manager Jim Cramer (Jim Cramer) analyzed that the Trump administration seems very dissatisfied with Apple and Nvidia. The White House may believe that Nvidia has not taken sufficient measures to "prevent China from obtaining high-performance chips." The White House also requires Apple to relocate its factories back to the United States and manufacture products such as smartphones domestically.
Cramer commented: "The White House cares more about cutting off supply to China than advancing our own interests." He pointed out that Nvidia's designed chips are sold all over the world, and Apple has extensive businesses in China, but the policies implemented by the Trump administration are actually weakening these two companies, which is unwise.
Cramer said that due to the Trump administration's "mandatory requirement for companies to lower performance," investors are not optimistic about Apple and Nvidia at present. He expressed his belief that if things get worse, the Trump administration might revoke some of the harsh policies, so he has reduced his holdings of stocks in these two companies.
However, Cramer also admitted that his prediction could be wrong, and the Trump administration might allow Apple and Nvidia to continue to decline. He frankly stated that Trump's behavior is unpredictable, and the market cannot accurately predict the impact of his policies.
"The decisions of this president are not set in stone. He may realize that an Apple with business in China is crucial to US national interests, and that a rule-abiding Nvidia deserves support; it doesn't have to be this way," Cramer said, "or he may never change, and these stocks will continue to be hit—both outcomes are possible."
Local time on April 21, traders work at the New York Stock Exchange Visual China
Trump has raised tariffs on China to 145%, causing deep concern among American investors. The three major US stock indices continued to fall on the 21st. CNBC reported that by the local closing time on the 21st, the Dow Jones Index fell by 2.48%, the S&P 500 Index fell by 2.36%, and the Nasdaq Index fell by 2.55%.
The conflict between Trump and Federal Reserve Chairman Powell also made the market uneasy. On April 17, Trump posted a message criticizing Powell, accusing him of always being "too late and always wrong" in his decision-making on interest rate cuts, and stating that his departure "came too late."
The Financial Times of the UK pointed out that it is unclear whether Trump was referring to Powell's expected term ending in May 2026 or hinting at his intention to remove him from office prematurely. Trump said last December that he would not seek to remove Powell before the end of his term. Powell has repeatedly emphasized that he will not leave his post prematurely.
Trump is attempting to use tariffs and other means to encourage manufacturing to return to the United States. However, BBC reported on April 20 that this idea of Trump's is unrealistic. BBC stated that currently about 90% of iPhones are manufactured in China, and among Apple's 187 top suppliers, approximately 150 factories are located in China.
Eli Friedman (Eli Friedman), who once served on Apple's Academic Advisory Board, said that Apple has been discussing diversifying its supply chain, but the United States is never considered. Forcing Apple to move its factories to the United States is purely wishful thinking. Apple CEO Tim Cook also clearly stated last year: "There is no more important supply chain in the world than China."
Earlier this month, a person familiar with Apple's plans told US media that Apple had been required years ago to disperse its production bases outside of China, "and they did do so. But now India and Vietnam are also affected by tariffs." This person stated: "This is almost like betrayal."
On April 8, an Apple store near Nanjing Road Pedestrian Street in Shanghai Visual China
The Trump administration also attempted to strengthen export restrictions on semiconductors to China. On April 15, the US Commerce Department announced strengthened export controls on Nvidia's chips. Nvidia's H20 chips, AMD's MI308 chips, and similar artificial intelligence chips require licenses for exports to China.
According to reports by Forbes News and others, Nvidia CEO Jensen Huang visited China on April 17 and emphasized the importance of the Chinese market. Huang Renxun stated that the US government's strengthened chip export control has had a significant impact on Nvidia's business, and Nvidia will continue to optimize its product system in compliance with regulatory requirements and remain unwaveringly committed to serving the Chinese market.
On April 17, Nvidia CEO Jensen Huang arrived in Beijing "Yu Yuan Tan Tian"
Trump's tariff policies have already impacted the seven major technology companies on Wall Street. Nvidia's stock price fell 4.51% on the 21st, Apple fell 1.94%, Microsoft fell 2.35%, Amazon fell 3.11%, Tesla fell 5.96%, Meta fell 3.35%, and Alphabet fell 2.28%.
AP reported that before Trump took office, most of America's tech giants believed that the new administration would focus on relaxing regulations, creating more opportunities for artificial intelligence and transactions. However, the actual policies implemented by Trump have troubled American businesses. From the day Trump officially took office until April 21, the total market value of the seven major US tech giants has plummeted by $4.2 trillion, a drop of 24%.
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