Some headlines are crossing about the Trump administration rescinding chip curbs and both the Nasdaq and Nvidia have jumped.
- Trump will not enforce the AI diffusion rule set to take effect May 15
- This was a Biden-era rule
- It comes ahead of a Middle East trip where Saudi Arabia and the UAE have bristled at restrictions on acquiring chips
- Trump officials are working on a new rule that would strengthen control of chips abroad
- Even with removing this, Middle Eastern and Southeast Asian countries have faced chip exports controls since 2023
- Could be part of a bigger deal as the UAE has pledged to invest as much as $1.4 trillion in US technology and infrastructure over the next decade
- Full report
The market got very excited about this but it’s more about chip shipments to the Middle East/India and it presumably doesn’t effect tariffs or restrictions on shipping chips to China.
I think the market initially read this as Trump taking tariffs off chips but that’s not what it is.
This article was written by Adam Button at www.forexlive.com.