Nvidia CEO Jensen Huang Dismisses Short-Term Impact of Tariffs, Reaffirms Commitment to U.S. Manufacturing

In a time of rising global trade tensions and economic uncertainty, Nvidia CEO Jensen Huang remains optimistic about the company’s future, particularly regarding U.S. manufacturing efforts. During a candid interview with CNBC’s Squawk on the Street, Huang addressed concerns surrounding President Donald Trump’s sweeping tariffs, assuring investors and stakeholders that the near-term effects on Nvidia will be minimal.

Tariffs Aren’t a Near-Term Threat, Says Huang

“We’ve got a lot of AI to build,” Huang said confidently on Wednesday. “AI is no longer just an application—it’s becoming the operating system for every industry going forward. And we’re incredibly enthusiastic about building right here in America.”

Huang emphasized that Nvidia and its partners are actively working to bring more of their chip manufacturing operations to the United States. “In the near term, the tariffs won’t have any meaningful impact on us,” he said, referencing ongoing collaborations with manufacturing giants such as Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, and Wistron.

This comes as the Biden administration, continuing policies initiated under Trump, implements stringent tariffs aimed at recalibrating trade relationships with China, Mexico, and Canada. The White House confirmed that the latest round of tariffs, which include a 25% duty on certain technology components, will take effect on April 2, 2025.

Nvidia’s U.S. Manufacturing Ambitions

Huang’s comments shed light on Nvidia’s broader strategy to reduce dependency on overseas manufacturing, especially in China, where geopolitical risks and export restrictions have made operations more challenging. “We’ve been collaborating closely with TSMC to prepare for chip fabrication in the U.S.,” Huang noted. TSMC has already committed $40 billion to build its Arizona fabrication facility, which is expected to begin production by 2026.

In addition, Foxconn—known for assembling Apple products—and Wistron are in discussions with Nvidia to potentially expand their manufacturing footprints within the U.S., bolstering Nvidia’s supply chain resilience.

“Long-term, reshoring manufacturing is not just a possibility; it’s something we’re committed to,” Huang said.

Navigating Export Restrictions and Competitive Pressures

Despite Huang’s optimistic tone, Nvidia faces challenges on multiple fronts. The company has been heavily impacted by U.S. export restrictions on advanced semiconductor technology to China, which tightened significantly in late 2023 under the Biden administration.

As a result, Nvidia’s revenue from China has reportedly dropped by nearly 50%, shrinking from 20%-25% of its total sales to just 10%-12%, according to Huang. “We’re navigating complex competitive pressures,” Huang admitted, pointing to Chinese tech giants like Huawei, which has made significant advancements in chip design and AI processing capabilities.

Furthermore, AI startup DeepSeek’s emergence earlier this year sparked concerns among investors. DeepSeek’s reasoning-based AI models claim to deliver higher performance with reduced infrastructure costs, raising fears that Nvidia’s dominant position in AI chips could be eroded. Huang dismissed those concerns, arguing that these reasoning models will require more, not less, computing power—and by extension, more of Nvidia’s GPUs.

Nvidia Stock Performance and Investor Sentiment

Nvidia’s stock has faced turbulence in recent months. After hitting a record high of $950 per share in January 2025, the company’s share price has since retreated by more than 20%, closing at $760 as of Tuesday’s market close. The dip is largely attributed to investor anxiety over export restrictions, competitive threats from China, and the broader macroeconomic impact of global trade tensions.

Despite these headwinds, analysts remain bullish on Nvidia’s long-term prospects. According to Goldman Sachs, Nvidia’s AI business is expected to grow at a compound annual growth rate (CAGR) of 28% through 2028, driven by demand for AI data centers, autonomous vehicles, and edge computing.

The Bigger Picture: AI and America’s Technological Future

Huang’s unwavering focus on AI reflects a broader trend in the tech industry. According to a recent report by McKinsey, AI could contribute up to $13 trillion to the global economy by 2030, with sectors like healthcare, finance, and logistics seeing transformative impacts. Nvidia’s GPUs remain at the heart of this revolution, powering everything from ChatGPT-style applications to autonomous vehicles.

“We’re building the infrastructure that’s going to drive the next industrial revolution,” Huang said. “And we’re doing it with partners who are just as committed to America’s technological leadership as we are.”

‍