Trump-Xi Meeting Cancellation Looms as Trade Tensions Slam Nvidia

A potential major blow to US-China relations looms as a planned meeting between President Trump and China's President Xi Jinping faces cancellation. Meanwhile, tech giant Nvidia grapples with the fallout from escalating trade tensions, with its stock, NVDA, plummeting by over five percent.

President Trump's announcement of 100 percent tariffs on Chinese goods has sent shockwaves through the tech industry, with NVDA stock among the hardest hit. The company's recent poor performance is largely attributed to geopolitical tensions, particularly the escalating trade conflict between the US and China. This includes new tariffs and export controls on rare earth metals, which threaten the American tech industry and have caused volatility in NVidia stock price.

China's decision to no longer purchase outdated chip generations from Nvidia, coupled with a US export ban on its latest semiconductor generations, has made sales in the once second most important market for the company extremely difficult. Looking ahead, the future outlook for NVidia stock in China appears bleak. Adding to the tension, the US President has accused China of aggressive behavior due to its announced export controls. From November 1, China plans to impose comprehensive export controls on almost all products, targeting rare earths, further complicating the situation.

The cancellation of the Trump-Xi meeting could signal a significant setback in US-China relations. Meanwhile, NVidia's struggles highlight the real-world impact of escalating trade tensions on the tech industry. As both nations prepare for further measures, the future of their economic relationship hangs in the balance.