(Editor’s note: Nvidia has disclosed Tudesday that the U.S. government has imposed new export restrictions on its H20 AI chip bound for China)

As US-China tariff tensions intensify, Beijing has indicated plans to impose steep duties on American semiconductor firms. According to the China Semiconductor Industry Association (CSIA), integrated circuits—regardless of packaging—will be classified based on the location of their wafer design at customs.

The US’s recent decision to exempt 20 categories of goods—including notebooks, smartphones, tablets, and processors—from tariffs has sparked a wave of urgent procurement among upstream manufacturers. However, the relief has done little to ease broader concerns among brand operators, who continue to grapple with rising component costs and weakening consumer demand. Industry sources warn that these pressures could lead to significant shifts in smartphone market share across North America in 2025.

The Chinese companies complain about America’s non-tariff barriers, but many foreign car manufacturers and brands want to enter the Chinese market—what company hasn’t returned defeated?