Trump tells U.S. chip design software makers to halt China sales: Report
President Donald Trump's administration has ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups, the Financial Times reported on Wednesday, citing several people familiar with the move.
Electronic design automation software makers, which include Cadence, Synopsys and Siemens EDA, were told by the Commerce Department to stop supplying their tech, the report said.
Shares of Cadence closed down 10.7% and Synopsys ended off 9.6%.
The Trump administration has taken an aggressive approach to competition from China, threatening massive tariffs on Chinese products amid reports of more targeted restrictions aimed at hobbling its ability to make the most sophisticated AI chips.
A spokesperson for the Commerce Department said it is reviewing exports of strategic significance to China, while noting "in some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending."
Synopsys relies on China for about 16% of its annual revenue, while China accounts for about 12% of annual revenue for Cadence.
Cadence declined to comment, while Synopsys and Siemens EDA did not immediately respond to requests for comment.
The Bureau of Industry and Security issued the directive to the companies, according to people cited in the Financial Times report.
A former Commerce Department official said rules restricting the export of EDA tools to China have been under consideration since the first Trump administration, but were ruled out as too aggressive.
"They are the true choke point," the person said.
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Time of India
24 minutes ago
- Time of India
As the TACO trade gains popularity, here are multiple occasions when Trump threatened and then backtracked
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China Tariffs Trump repeatedly accused China of cheating the U.S. and shooting tariffs to over 145% in April. This caused U.S. companies to stop China orders and shipments. Then Trump lowered tariffs to 10% for 90 days to start talks after a meeting between Treasury Sec. Scott Bessent and Chinese officials. A separate 20% tariff on fentanyl ingredients from China stayed. A court ruling this week struck down both tariffs, but they remain during appeals, as stated in the reports. 7. Tariff on iPhones After raising China tariffs, Trump made an exception for iPhones, lowering it to 20%. Last Friday, he said he'd put a 25% tariff on iPhones no matter where they're made, starting at the end of June. Trump wants iPhones to be made in the U.S., but Apple is shifting production to India. As mentioned in the report by NBC News, officials walked it back. Treasury Sec. Bessent said it's more about phone chips than full phones. 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He later said cars from the U.K., like Land Rover and Aston Martin, would get just a 10% tariff under a draft U.S.-U.K. trade deal still being negotiated, as per NBC News report. FAQs: Q1. What is TACO trade? TACO trade stands for 'Trump Always Chickens Out,' which refers to Trump's habit of backing down on tariff threats . Q2. How do Trump's tariff threats affect? They cause uncertainty, delay investments, and impact jobs and the stock market.
Time of India
25 minutes ago
- Time of India
US stock market today: Dow edges up but S&P 500 and Nasdaq fall as Trump's China tariff threat hits Apple, Nvidia, Regeneron and Gap—even as inflation cools
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Market summary – how the major indexes moved S&P 500: Fell 0.1% Nasdaq Composite: Dropped 0.3% Dow Jones Industrial Average: Rose 0.1% Despite trade concerns, the Dow showed resilience, while tech-heavy indexes slipped slightly amid cautious sentiment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Click Here To Read More - micro segmentation software Expertinspector Click Here Key market drivers 1. Trump's tough talk on China renews trade war fears President Trump accused China of 'totally violating its agreement' with the U.S. Trade talks are reportedly 'a bit stalled,' according to Treasury Secretary Scott Bessent. Tariff tensions are escalating beyond goods to include chip export restrictions and visa issues. A U.S. appeals court paused a lower court ruling that blocked Trump's tariffs—giving the White House until Monday to respond. 2. 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Live Events Stocks to watch today Regeneron Pharmaceuticals (REGN) Shares plunged over 17% Reason: Disappointing late-stage trial results for its smoker's lung disease drug Despite earlier promising results, the final trial failed to meet expectations, triggering a sharp selloff Other notable movers: Gap (GPS): Fell 17% after a weak Q2 forecast Ulta Beauty (ULTA): Rose 7% after strong Q1 results Dell Technologies (DELL): Up 1.7% on strong revenue beat Consumer sentiment – signs of stabilization University of Michigan's final May reading: Held steady, breaking a 4-month decline streak Positive factor: Temporary China tariff pause boosted economic optimism Inflation expectations Long-run (5-10 years): Dropped to 4.2% (from 4.4% in April) Short-run (1 year): Ticked up to 6.6% (from 6.5%) Why are investors worried about Trump's new China tariff comments? On Friday, President Trump escalated rhetoric against China, accusing Beijing of breaking its deal with the US just weeks after the two nations had agreed on a temporary tariff truce. 'They've totally violated their agreement with us,' Trump told reporters, stoking fears of a renewed US-China trade war. Talks between Washington and Beijing have reportedly hit a roadblock. Scott Bessent told Fox News that discussions are 'a bit stalled,' suggesting only a direct call between Trump and Chinese President Xi Jinping could push things forward. The standoff isn't just about tariffs anymore—it now includes chip restrictions and visa issues, adding layers of complexity to already tense negotiations. Adding to the legal confusion, a US appeals court on Thursday paused a trade court decision that had blocked Trump's global tariffs. The White House now has until Monday to challenge the ruling, which could reshape how tariffs are handled going forward. 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What's next for the stock market and economy? As May wraps up, investors will likely stay focused on US-China developments, especially with Monday's court deadline looming for the White House on tariffs. At the same time, attention will turn to whether the Fed sees enough progress on inflation to hold off on further rate hikes. With solid month-end gains across major indexes and cooling inflation numbers, markets have reasons to stay optimistic—as long as geopolitical tensions don't boil over again. The stock market today reflected a tug-of-war between easing inflation and renewed global trade worries. While Friday was mixed, the broader month paints a more hopeful picture for US equities. FAQs: Q1: What caused the stock market to dip today? Rising US-China tensions and renewed tariff fears made the market slip despite cooling inflation data. Q2: How did PCE inflation data affect investors? The PCE index showed inflation is easing, giving hope the Fed might avoid more rate hikes.
News18
28 minutes ago
- News18
India Surpasses China, Becomes Largest iPhone Exporter To US Amid Trump's Warning To Apple
Last Updated: Apple's annual iPhone sales surpass 220 million, with major demand coming from the United States, China, and Europe. India became the largest exporter of iPhones to the United States, exporting more than even China. Reportedly, the shipments from Beijing to Washington witnessed a sharp drop by nearly 76 per cent. According to a report by market research firm Omdia, India exported nearly three million iPhones to the US in April. The report comes only a few days after US President Donald Trump warned Tim Cook's apple against building its plants in India. 'Apple has been preparing for this kind of trade disruption for years. The April spike likely reflects strategic stockpiling ahead of tariff hikes," the report quoted Le Xuan Chiew, research manager at Omdia as saying. Earlier on May 5, a CyberMedia Research report said that Apple's iPhone supplies in India grew 25 per cent year-on-year in the March quarter of 2025. In the last few years, India has emerged as an important hub in Apple's global supply chain. According to a report by Reuters, Apple's annual iPhone sales surpass 220 million, with major demand coming from the United States, China, and Europe. '…But I had an understanding with Tim (Cook) that he wouldn't be doing this. He said he's going to India to build plants. I said, 'That's okay to go to India, but you're not going to sell into here without tariffs.' And that's the way it is. We're talking about the iPhone. If they're going to sell it in America, I want it to be built in the United States," Trump had said. First Published: May 30, 2025, 21:37 IST
