US stock markets suffered more significant losses on Wednesday, with stocks in leading AI chipmakers slumping after firms said new restrictions on exports to China would cost them billions.
Nvidia fell 6.87% – and was at one point down 10% – after revealing it would now need a US government licence to sell its H20 chip.
Rival chipmaker AMD slumped 7.35% after it predicted a $800m (£604m) charge due to its MI308 also needing a licence.
Dutch firm ASML, which makes hardware essential to chip manufacturing, fell more than 5% after it missed order expectations and said US tariffs created uncertainty.
The losses filtered into the tech-dominated Nasdaq index, which recovered slightly to end 3% down, while the larger S&P 500 fell 2.2%.
Pic: AP
Such losses would have been among the worst in years were it not for the turmoil over recent weeks.
It comes as China remains the focus of Donald Trump’s tariff regime, with both countries imposing tit-for-tat charges of over 100% on imports.
The US commerce department said in a statement it was “committed to acting on the president’s directive to safeguard our national and economic security”.
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Nvidia’s bespoke China chip is already deliberately less powerful than products sold elsewhere after intervention from the previous Biden administration.
However, the Trump government is worried the H20 and others could still be used to build a supercomputer in China, threatening national security and US dominance in AI.
Nvidia said the move would cost it around $5.5bn (£4.1bn) and the licensing requirement would be in place for the “indefinite future”.
Nvidia’s recently announced a $500bn (£378bn) investment to build infrastructure in America – something Mr Trump heralded as a victory in his mission to boost US manufacturing.
However, it appears to have been too little to stave off the new restrictions.
Pressure has also come from the Democrats, with senator Elizabeth Warren writing to the commerce secretary and urging him to limit chip sales to China.
Meanwhile, the head of US central bank also warned on Wednesday that US tariffs could slow the economy and raise inflation more than expected.
Jerome Powell said the bank would need more time to decide on lowering interest rates.
“The level of the tariff increases announced so far is significantly larger than anticipated,” he said.
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
Predictions of a recession in the US have risen significantly since the president revealed details of the import taxes a few weeks ago.
However, he subsequently paused the higher rates for 90 days to allow for negotiations.
EV tire specialist ENSO has launched a new premium range of ultra-high performance (UHP) tires designed for passenger electric vehicles. Soon, US drivers of EVs from Tesla and other high-performance models will be able to purchase this new tire range as ENSO significantly expands its product lineup.
ENSO is a UK-based company that hails itself as the “world’s first tire company dedicated exclusively to EVs.” Like many EV automakers its tires support, the company utilizes a direct-to-consumer sales model to help reduce a customer’s total cost of ownership while providing tires that extend EV range and reduce pollution.
In the fall of 2024, ENSO signed a strategic international partnership with Uber to provide its EV rideshare drivers with low-emission tires. As the only Certified B-Corporation in the tire industry (a highly-polluting one), ENSO uses more sustainable methods to help transform the global economy, benefiting all people and the planet they inhabit.
To carry on this mission, ENSO has unveiled a new Premium line of EV tires engineered specifically for the unique demands of all-electric driving. Better yet, these new tires are coming to the US soon.
ENSO to launch new premium EV tire line in UK and US
According to a release from ENSO this morning, its new Premium line of EV tires are now available to customers in the UK before these go on sale to US drivers this summer. The ultra-high performance tires are A/A EU-labeled, meaning they carry the highest rating for energy efficiency and wet grip performance.
According to ENSO, its Premium EV tires also deliver the highest energy efficiency and safety in their class. They will help customers like Tesla Model 3 and Model Y owners save on TCO, tire pollution, manufacturing emissions, and reduced energy consumption while driving. Per ENSO co-founder and CEO Gunnlaugur Erlendsson:
ENSO’s mission has always been to accelerate EV adoption by making tires that enhance rather than compromise electric performance. With ENSO Premium, we’re plugging a long-standing gap in the tire market by offering EV drivers a purpose-built, affordable, premium and sustainable EV tire alternative that matches the innovation of their EV. We engineered ENSO Premium for the specific needs of EVs. from instant torque to regenerative braking. We’re delivering a tire that not only performs well but also helps EV drivers get more miles from every charge.
When designing its Premium EV tires, ENSO says it looked to match its drivers’ performance and sustainability values, specifically noting Tesla models. The tires were designed to reduce rolling resistance, extend range, and take longer to wear out than traditional tires, especially given the higher weight of EV models due to large battery packs. The result is a tire that enables fewer charging stops, lower energy consumption, and less overall tire pollution – ideal factors for the growing segment of sustainable electric mobility.
This summer, US drivers will be able to purchase the Premium line of EV tires at wholesalers, independent retailers, and directly through the company website.
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A US federal judge has agreed to pause a lawsuit filed by 18 state attorneys general and the crypto lobby group DeFi Education Fund against the Securities and Exchange Commission after all parties said new SEC leadership could make the action moot.
Kentucky District Court Judge Gregory Van Tatenhove ordered a 60-day stay on the case on April 16, noting a mid-March filing from the SEC that “this case could potentially be resolved” due to a leadership transition at the regulator.
He added that the parties must file a joint status report within 30 days.
Paul Atkins, a Wall Street adviser who has held board positions with crypto advocacy groups, was sworn in as the new SEC chair earlier this month, replacing acting chair Mark Uyeda and taking over from Gary Gensler.
The 18 attorneys general, all hailing from Republican states, filed the lawsuit with the DeFi Education Fund against the securities regulator in November, alleging that the SEC exceeded its authority when targeting crypto exchanges with lawsuits, accusing the regulator and then-chair Gensler of “gross government overreach.”
The plaintiffs included attorneys general from Nebraska, Tennessee, Wyoming, Kentucky, West Virginia, Iowa, Texas, Mississippi, Ohio, Montana, Indiana, Oklahoma and Florida, among others.
“Without Congressional authorization, the SEC has sought to unilaterally wrest regulatory authority away from the States through an ongoing series of enforcement actions,” the lawsuit stated.
DeFi groups drop case against IRS over killed broker rule
Meanwhile, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council dropped their lawsuit against the Internal Revenue Service on April 16.
“The parties hereby stipulate to voluntary dismissal of this action without prejudice because the case has become moot,” stated the filing.
The lawsuit, filed in December, argued that the so-called IRS DeFi broker rule went beyond the agency’s authority and was unconstitutional.
Related: NY attorney general urges Congress to keep pensions crypto-free — ‘No intrinsic value’
On April 11, President Donald Trump signed a bill to revoke the rule that would have required DeFi protocols to report transactions to the IRS.
It comes as the SEC has paused or dropped several high-profile lawsuits against crypto companies this year under its new leadership.
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