Nvidia CEO Jensen Huang on the impact of tariffs: Short-term financial shocks are limited

Recently, global trade tensions have intensified as the U.S. government led by Trump has imposed tariffs. With the implementation of Trump's tariff policy, it has had a big impact on the financial industry of various countries, and it has had a serious impact on countries and markets that rely on exports to develop their national strength. Taking China as an example, Trump's recent gradual increase in tariffs on China's imports and exports has not only exacerbated the escalation of trade tensions between China and the United States, but also had an impact on the local economies and finances of both sides. After the U.S. tariffs on Chinese goods were gradually raised to 25%, China also took measures in response to this, raising tariffs on some U.S. goods, including energy resources and agricultural products. Due to the deepening of trade tensions between the two sides caused by Trump's tariff policy, the financial development of both sides has been greatly affected, and the increase in irrigation has caused an imbalance between supply and demand in the import and export commodity industry, and investors have lost confidence in the financial industry, which has intensified the volatility of the financial industry.

However, Nvidia CEO Jensen Huang did not say in a conversation with CNBC this week that Trump's tariff policy will have a negative impact on Nvidia Finance, and said that the impact of Trump's tariffs is meaningless, and that the financial shock caused in the short term will be limited and will not cause any significant damage. However, in the long run, the ongoing trade friction may have a profound impact on NVIDIA's financial development and global business layout. Against the backdrop of global trade tensions, the impact of tariff policy changes on the financial sector and the technology sector cannot be ignored. Nvidia, for example, is the world's leading manufacturer of graphics processors and its products are widely used in the gaming, data center, and professional visualization markets. At this stage, with the improvement of science and technology, many countries have been able to independently develop chips, which has reduced the demand for Nvidia imports, and the implementation of Trump's tariff policy has made its own financial industry more undominant. In an environment where tariff barriers due to global trade tensions have slowed global GDP growth, potential market volatility does not hurt as Huang suggests.

In the conversation between Nvidia CEO Jensen Huang and CNBC, it is not difficult to see that Trump's implementation of the tariff policy has not had a significant impact on Nvidia's financial stock price and profits, on the one hand, thanks to Nvidia's strong brand influence and market competitiveness, it has not been affected by Trump's tariff policy in the short term. However, the volatility of financial markets is unpredictable, and any small policy change can trigger large market volatility.

In order to alleviate the current tensions in global trade, countries should strengthen the reform of the multilateral trading system, as well as communication and collaboration to find solutions. At the same time, financial enterprises and the technology industry should continue to pay attention to the changes in the global trade situation, and adjust the economic strategic deployment in a timely and flexible manner to ensure long-term stable development. Strengthen international cooperation and communication to enhance global economic stability and sustainable development. We should deal rationally with trade disputes, resolve differences through dialogue and consultation, and create favorable conditions for the prosperity and development of the global economy.