As President Donald Trump imposes tariffs on Chinese products, investors may bet on which companies are the most exposed. Some turned their sights toward semiconductor producers, such as Qualcomm Inc. (QCOM),🏅 a mobile chip maker that does much of its business in China. This company also received attention due to trade wars in Trump's first term.

Let's explore how Qualcomm is exposed in a trade war between the United States and China.

Qualcomm’s Role in Global Technology

Qualcomm is a central player in the global semiconductor industry, especially when it comes to mobile communications. As the primary supplier of chipset🐈s for smartphones, tablets, and other connected devices, Qualcomm’s products are essential for enabling wireless communication and high-speed data transfer.

In addition to consumer electronics, Qualcomm’s chips are used in a wide range of industrial and enterprise applications. The company’s technologies support everything from automotive systems to 澳洲幸运5官方开奖结果体彩网:Internet of Things (IoT) devices. Relevant for this article, this positioning places Qualcomm at the intersect🐼ion of the global trade conflict where it not only faces competition but also bears the brunt of geopolitical tensions.

Qualcomm and China

Things get a little more interesting when analyzing Qualcomm's important markets. China accounts for a sizable portion of Qualcomm’s total revenue, with estimates suggesting that over 50% of the company's income stems from the region.

The U.S.-China trade war obviously complicates this relationship, particularly with respect to the Chinese government’s policies regarding domestic technology development. China has made strides to reduce its dependence on foreign technology providers, pushing for the development🐠 of its own semiconductor industry and imposing tariffs on U.S. tech products.

Trade Wars and Trump's First Term

In May 2020, the Trump administration blocked semiconductor shipments from U.S. chipmakers to Huawei Technologies Co., Ltd., a leading Chinese telecommunications and consumer electronics company. This move was part of the U.S. trade war with China, b🥃ut the result was that computer hardware and semiconductor stocks fell in the United States.

According to CNBC, Qualcomm stock fell over 5% while Intel stock fell by 1.4% in one day. Huawei relies on these imported parts and software for its smartphones a🐓nd telecom infrastructure. To make matters worse, Qualcomm was also in a paten💝t licensing dispute with Huawei. 

Huawei relies on U.S. firms🗹 for networking equipment and data center components. Any ban affects all Huawei product💟s, including high-end smartphones, mobile infrastructure, data centers, and cloud services. The ban would also affect Huawei’s global customers, especially European carriers.

Retaliation from China could target chip giants like Qualcomm, Broadcom, and Apple, who depend on chip makers for iPhone manufacturing. The last time Qualcomm got caught up in the United States-China trade war, it withdrew from the acquisition of NXP Semiconductors (NXPI).

Trade Wars and Trump's Second Term

In February 2025, President Donald Trump initiated a series of trade policies that significantly impacted Qualcomm, a leading semiconductor company. On Feb. 4, 2025, he imposed a 10% tariff on Chinese imports and eliminated the "de minimis" exemption for low-value goods, affecting products from China and Hong Kong. This policy change means that all Chinese-origin products, regardless of value, are now subject to import taxes, directly impacting Qualcomm's supply chain and cost structure.

The imposition of tariffs and the removal of the de minimis exemption could lead to increased costs for Qualcomm's Chinese customers, potentially affecting their purchasing decisions and, consequently, Qualcomm's revenue streams.

In response to these developments, Qualcomm's stock experienced a decline, reflecting investor concerns about the company's financial outlook amid escalating trade tensions. The company's shares fell from over $175/share to below $167 upon the news, as a weak outlook for its 澳洲幸运5官方开奖结果体彩网:patent licensing business outweighed strong expectations for future sales and profit.

The Bottom Line

Qualcomm faces significant risks from the ongoing U.S.-China trade war, primarily due to its heavy reliance on the Chinese market and its key partnerships with Chinese companies like Huawei. In 2025, Trump's executive order implementing a 10% tariff on China has a direct impact to Qualcomm.