The deal between the US and China regarding a tariff pause marks a significant event for financial markets and companies like Nvidia.
US-China Tariff Agreement
US Treasury Secretary Scott Bessent announced an agreement reached with China for a 90-day pause on reciprocal tariffs. This decision aims to ease trade tensions between the two largest economies, providing substantial relief to financial markets.
Impact on Nvidia's Business
Amid these developments, Nvidia has faced difficulties due to export restrictions, forecasting a $5.5 billion loss linked to restrictions on H20 chip sales to China. Estimates suggest the Chinese market generated $12 to $15 billion in revenue for the company last year, making it crucial.
Nvidia Stock Dynamics
In response to the market-wide reaction, Nvidia shares rose by 5%. The stock traded at $122.57 in premarket, reflecting a $5.92 increase over the previous close. Despite challenges, Nvidia remains one of the most valuable companies with a market cap of approximately $2.85 trillion.
The tariff pause agreement marks an important milestone in US-China trade relations and serves as temporary relief for tech companies like Nvidia.
