President Trump’s trade war with China started Tuesday, with the White House implementing a 10% rate for all Chinese goods that enter the US. The largest companies in Silicon Valley are already entangled in what could be in a series of tit-for-tat actions between the two largest economies in the world.
On Tuesday, the Chinese state administration for Market Regulation (SAMR) announced that it opens an antitrust investigation into Google (Google, Googl). The desk has not provided additional details about the relocation.
Wednesday, Bloomberg reported That China is considering taking an antitrust examination to Apple’s (AAPL) App Store practices. Samr officials have spoken with Apple managers for some time, but the timing of the potential probe sets up Apple as another pawn in the economic chess match between the Super Power.
And According to the Financial TimesChinese officials are considering launching a probe in Intel (Intc) on top of an ongoing investigation into NVIDIA (NVDA).
It is all part of China’s efforts to punish the most prominent companies of the US and to bring its own pain to the US, while the two nations will continue to fight it in the coming weeks and months. Here is an overview of which companies the heat will feel and that must remain relatively intact. For now.
Apple takes hits from both the US and China in the last economic skirmish of the countries. The US kicked things off by raising its rate on goods made in China, including Apple Products and the most important iPhone.
Stuck in the middle: Nvidia CEO Jensen Huang in Las Vegas last month. (Photo by Artur Widak/Anadolu via Getty images) ·Anadolu via Getty images
That would send the prices on Apple’s hardware higher, possibly with no less than 10%, or forcing Apple to eat some or all tariff costs, which reduces iPhone margins. Apple can also submit an exemption at the rates that it did during the earlier Trump administration. That would enable his devices to bring to the US without treating the 10% levy. But so far there is no word about whether it is able to do that.
China now records revenge through his antitrust research into Apple’s App Store practices. The research itself is not unique. The European Union and other countries have forced Apple to apply its App Store requirements and payment system in recent years. And the Ministry of Justice has submitted an antitrust procedure against Apple, claiming that it is deliberately making it difficult for consumers to use third -party hardware or switch to another tire of devices.
But rates and the antitrust action of China will probably not damage Apple finances.
Read more: What are rates and how do they influence you?
According to Bofa Securities Analyst Wamsi Mohan, Apple Device Assemble could move to factories in other countries, something the company has been revealing since Covid has exposed weakness in his supply chain.
If Apple builds 80% of its devices outside of China, this would only affect $ 0.05 per share of this financial year. If 50% comes from outside China, that could rise between $ 0.07 and $ 0.12 per share.
China’s antitrust performance would place a dent in the income of Apple in the same way, but it would not be a wipeout, explained the Dan Ives van Wedbush in an investor note.
The company achieved $ 26 billion in service income, including the sale of App Store, in Q1 and $ 124 billion in total turnover for the quarter. According to Ives, Apple generates $ 5 billion a year via the Chinese App Store, a relatively thin slice of the total cake of the company.
Pressed by both parties: Apple CEO Tim Cook attends the inauguration of Donald Trump. (Kevin Lamarque / Pool / AFP) ·Kevin Lamarque via Getty images
“It is less about the exposure to income for investors and more about building US/China voltages with American great technology in line for retaliation shots,” Ijes wrote in his memo.
Intel, Google and Nvidia are also confronted with potential antitrust investigations as part of China’s response to American rates, and it can in particular mean problems for Intel.
The chip maker generates most of his sales through sales in China. In 2024, China accounted for $ 15.5 billion of the income of $ 53.1 billion from the company. The US, the second largest region of Intel, was $ 12.9 billion.
Intel is in the middle of a multi -year reversal, so that the company is brought into a particularly precarious situation when China decides to take some kind of action against the company.
Google does very few things in China from its part. After he had taken his activities from the company years ago, the only real presence the company has, is selling advertisements for Chinese companies that want to reach foreign customers.
“It is almost comical that China is considering regulating Google – because Google is effectively forbidden there,” wrote the deep water management partner Gene Munster in a research memorandum.
Things are a bit more shy for Nvidia. The company is under pressure from both China and the US after China launched a probe in the company in December after the relocation of the then President Biden to limit the export of certain Nvidia chips to the country. And after the debut of Deepseek’s AI models, which the company has developed using Onderverdeide Nvidia chips, the US is considering sharpening export restrictions even further.
China was good for $ 5.4 billion in Nvidia’s turnover of $ 35 billion in Q3, well behind $ 14.8 billion in the US turnover. But as one of the largest markets of the AI industry, China is an important part of the company’s general strategy.
It is not entirely clear what an antitrust probe would mean for Nvidia in China, but if the US forces the company to limit more chips than it already, it can experience an income from the region.
For now, Big Tech must have to contend with the rates of the US. But with China that indicates, it is willing to hurt Silicon Valley companies when Trump pushes things further, companies will not be able to rest comfortably for some time.
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E -Mail Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter @DanielHowley.
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