The global business world is feeling the heat as U.S. President Donald Trump’s trade war continues to rattle economies, stock markets, and consumer confidence. On Wednesday, stock markets slid again, with the tech-heavy Nasdaq falling 3%, led by a 7% plunge in Nvidia shares.
Tech Takes a Big Hit
Tech companies bore the brunt of the market drop. AI chipmaker Nvidia revealed a $5.5 billion hit due to restrictions on exports to China, while ASML, a global leader in chip-making tools, admitted that ongoing tariffs are clouding their 2025–26 outlook. Fellow U.S. chipmaker AMD reported an $800 million impact from similar export curbs.
Industry officials say American chip equipment makers could collectively lose up to $1 billion annually if these tariffs persist.
Airlines and Retail Brace for Impact
Airlines like United are preparing for an uncertain summer, with executives warning of unpredictable profit margins. United Airlines, while holding onto its 2025 projections, laid out two possible outcomes, admitting that this year’s economic climate is “impossible to predict.”
Retailers are also warning customers to shop now before prices rise. China-based platforms Temu and Shein sent out identical warnings that prices will increase starting April 25 due to tariffs.
Trade Talks Still in Limbo
Despite Trump’s claims that many countries are lining up to make trade deals with the U.S., progress has been slow. Talks with Japan have escalated to a personal meeting between Trump and Japanese officials, as over 1 million Japanese cars face potential price hikes if tariffs stay in place.
Nissan Americas’ chairman Christian Meunier emphasized the difficulty of shifting production to the U.S., stating, “We need a break on tariffs to localize and build a supplier base, and that takes years.”
The Fed and Consumer Concerns
Federal Reserve Chair Jerome Powell addressed the economic slowdown and warned that tariffs will likely raise inflation, burdening consumers. While consumer spending has held up so far, cracks are emerging—particularly in the services sector.
In response, businesses rushed to ship goods before new tariffs took effect in March, leading to a temporary spike in retail sales. However, fears linger that demand could drop as prices rise.
