President Trump’s trade war started with China on Tuesday, as the White House implemented a 10 % tariff on all Chinese goods coming to the United States. The largest Silicon Valley has already occurred in what could turn into a series of measures that reach the largest economists in the world.
On Tuesday, the SAMR SAMA administration announced that it opens an investigation to combat monopoly in Google (Google, Googl). The agency did not provide any additional details about this step.
Wednesday, I mentioned Bloomberg China is considering launching an investigation of anti -monopoly in the practices of the Appl Store (AAPL). SAMR officials were talking with Apple’s executives already for some time, but the timing of the possible investigation places Apple as another pawn in the economic chess match between the great powers.
and According to the Financial TimesChinese officials are considering launching Intel (INTC) the highest continuous investigation into NVIDIA (NVDA).
It is part of China’s efforts to punish the most prominent companies in the United States and attach its own pain to the United States, as the two countries continue to fight in the coming weeks and months. Below is a group of companies that will feel heat, which must remain relatively safe. for now.
Apple takes successes from both the United States and China in the latest economic skirmishes for countries. The United States has started things by imposing a tariff on the goods made in China, which include Apple and iPhone products.
Hanging in the center: CEO of Nvidia Jensen Huang in Las Vegas last month. (Artur Widak/Anadolu Photography via Getty Images) ·Anadolu via Getty Images
This will push prices on Apple to the top, and may reach 10 %, or force Apple to eat some or each tariff cost, which reduces iPhone margins. Apple can also provide an exemption from definitions, which it did during the previous Trump administration. This would allow it to bring its devices to the United States without the need to deal with a 10 % tax. But so far, there is no word about whether he is able to do this.
China is now divided through its achievement in anti -monopoly in the Apple App Store practices. The investigation itself is not unique. The European Union and other Apple countries have forced changes to the requirements of the application store and the payment system in recent years. The Ministry of Justice has filed a anti -monopoly suit against Apple, as it makes it difficult for consumers to use third -party devices or turn into another set of devices.
However, tariffs and anti -monopoly currencies in China are unlikely to cause apple money to be attached significantly.
Read more: What are the definitions, and how do you affect you?
According to Bofa Securities Wamsi Mohan, Apple can transfer devices collection to factories in other countries, something that the company has done since Covid has been weak in its supply chain.
If Apple built 80 % of its devices outside China, it will only be witnessed to get $ 0.05 per share in this fiscal year. If 50 % are obtained from outside China, which may rise between $ 0.07 and $ 0.12 per share.
Dan Evez explained in an investor memo that the anti -monopoly campaign in China will similarly put Apple’s profits, but it will not serve as archives.
The company achieved the services revenues of $ 26 billion, which include sales of the application store, in the first quarter and 124 billion dollars in the total sales of this quarter. According to IVES, Apple creates $ 5 billion annually through the Chinese App Store, a relatively thin slice of the total company pie.
It was pressed by both sides: Apple Tim Cook CEO is attending Donald Trump’s opening. (Kevin Lamarque / Pool / AFP) ·Kevin Lamark via Getty Images
“It is less than revenue to investors and more about building American/China tensions with the United States, large technology in the arc reprivulant line,” Evez wrote in his note.
Intel, Google and Nvidia also face potential investigations to combat monopoly as part of China’s response to American definitions, and this may mean an Intel problem in particular.
The chips maker generates the largest part of his revenues through sales in China. In 2024, China formed $ 15.5 billion of the company’s revenue of $ 53.1 billion. The United States, the second largest region in Intel, is $ 12.9 billion.
Intel is in the midst of a multi -year voltage, which puts the company in a particularly fraught mode if China decides to take a kind of action against the company.
Google, for its part, offers few works in China. After withdrawing its operations from the company for years, the only real existence that the company enjoys is to sell ads to Chinese companies that are looking to reach foreign customers.
“It is almost a comedy that China is considering Google – since Google is actually banned there,” Jane Monster wrote the administrative partner of Deepwateer Asset in a research note.
Things are more fragile to Nevidia. The company is under pressure from both China and the United States after China launched an investigation into the company in December after the President of Biden moved at that time to restrict the exports of some NVIDIA chips to the country. After the appearance of Deepseek models of artificial intelligence, which the company has developed using NVIDIA chips that suffer from a lack of strength, the United States is considering tightening these export restrictions further.
China amounted to $ 5.4 billion of NVIDIA revenues of $ 35 billion in the third quarter, behind US sales of $ 14.8 billion. But as one of the largest markets of artificial intelligence, China is an important part of the company’s comprehensive strategy.
It is not quite clear what the anti -monopoly probe will mean for NVIDIA in China, but if the United States is forcing the company to restrict the chips more than it does, it may face a opposite wind of revenues outside the region.
Currently, Big Tech must agree with the US tariff. But with China’s signal, it is ready to put the Silicon Valley company to harm if Trump pushes things further, companies will not be comfortable comfortably for some time.
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