The Japanese yen rose in Asian trade on Wednesday against a basket of major rivals, resuming gains against the dollar after a short hiatus yesterday and approaching seven-month highs on renewed haven demand as the trade war escalates.
The US government told Nvidia it’ll need a license to sell chips to China and other countries, with the company warning it’ll carry a charge of $5.5 billion to export H20 chips to Beijing.
Otherwise, US President Donald Trump ordered an investigation into all basic metals, chips, and pharmaceutical imports, in preparation for potential tariffs, while Chinese authorities banned local airlines for shipping Boeing aeroplanes.
The Price
The USD/JPY price fell 0.55% to 142.46, with a session-high at 143.28.
The yen lost 0.2% on Tuesday against the greenback, the first loss in four days on profit-taking away from a seven-month high at 142.05.
Nvidia Restrictions
On April 9, the US government told Nvidia it’ll need a license to export its chips to other countries, with a $5.5 billion charge now linked to the company’s GPU exports to China.
During Biden’s administration, the US limited AI chip exports in 2022, then updated the rules in the next year to ban the sales of more advanced AI processors.
The H20 Nvidia chips are AI chips designed for China and adhere to US export limits, and made Nvidia earnings between $12 billion and $15 billion in 2025.
Nvidia warned that chip sales in China fell sharply last year as the competition expanded, chiefly from Huawei.
Escalating Trade War
US President Donald Trump ordered an investigation into all basic metals, chips, and pharmaceutical imports, in preparation for potential tariffs, while Chinese authorities banned local airlines for shipping Boeing aeroplanes.
The trade war still shows no sign of advancing with both sides stubbornly waiting for the other to yield.
