Nvidia and AMD said Trump’s new restrictions on exports of AI chips to China will cost them billions of dollars, adding to uncertainty caused by his trade war.

President Donald Trump’s administration has barred Nvidia Corp. from selling its H20 chip to China, an escalation of Washington’s tech battle with Beijing that will cost the company billions of dollars and hamstring a product line it explicitly designed to comply with previous US curbs.

The Trump administration has effectively barred Nvidia from selling its custom artificial intelligence processors to customers in China.

The White House said China is facing up to a 245 percent tariff on imports to the U.S. "as a result of its retaliatory actions," as the trade war between the world's two largest economies continues to heat up.

President Donald Trump‘s administration has hiked tariffs on Chinese imports to the U.S. by up to 245%, as per a fact sheet released by the White House on Apr. 15. Trump signed an executive order launching an investigation into the national security risks posed by American reliance on imported critical minerals and their derivatives.