In recent days, the Trump administration has faced serious challenges in its trade policy. An unexpected turn in tariff regulations raises questions about the future of US-China interactions.
Trade Policy and Its Unexpected Shift
President Trump recently introduced the term 'panican', labeling those stressed by market instability. He himself became a 'panican' when the 10-year Treasury yield rose above 4.5%, leading to an unexpected change in his stance on tariffs.
The new tariff measures that took effect involve a 90-day suspension for most countries, excluding the baseline rate of 10%. However, tensions in trade relations with China are escalating, as tariffs on Chinese goods have increased to 125%.
Company Analysis: AMD and Lam Research
In the context of rising tariffs, companies reliant on China may face serious challenges. For instance, AMD, competing with Nvidia and Intel, generated 34.45% of its sales in the US and 24.70% in China in 2024. Despite a 23% decline in its stock this year, the company remains competitive due to product innovations.
Lam Research, another key player in the semiconductor industry, supplies equipment to chip manufacturers like Intel and Samsung. While 31% of its revenue comes from China, its technologies remain unique and in demand.
Tesla Amid Uncertainty and Competition
Tesla, facing a 35% drop in its stock this year, cannot overlook risks associated with the Chinese market, as 21% of its revenue comes from China. However, CEO Elon Musk emphasizes that Tesla competes successfully in this market without tariffs. Despite challenges related to revenue and branding, the company retains the potential for innovation and a transition into the robotaxi market.
US-China trade policy remains a focal point. Major companies such as AMD, Lam Research, and Tesla must adapt to new market conditions to maintain their positions and evolve amid instability.
