Nvidia Corporation ( NVDA ) shares are trading lower on Wednesday amid overall market weakness, which may be due to uncertainty around tariffs.

What To Know: Earlier this week, the Wall Street Journal reported that President Donald Trump‘s administration may narrow the tariffs set to be announced on April 2 by excluding certain industries.

Specifically, the administration is expected to impose reciprocal tariffs on multiple countries starting April 2, which Trump has called “Liberation Day.” While the sector-specific tariffs Trump will exclude have not been announced, the administration may choose to exempt industries like automobiles and semiconductors.

Treasury Secretary Scott Bessent said the U.S. is focusing on imposing tariffs on about 15% of countries with continuous trade imbalances with the U.S., a group sometimes labeled the “dirty 15.” The White House has not announced the specific countries, but Bessent noted that the countries account for most of the U.S.’s foreign trade.

Uncertainty over the upcoming tariffs may be affecting the overall market because any sector excluded from them will likely avoid potential price increases and maintain stable supply chains. The semiconductor sector, where Nvidia ( NVDA ) operates, is especially reliant on international supply chains, and its exclusion from new tariffs would greatly benefit the company by preventing cost increases.

What Else: On Tuesday, the Trump administration placed over 50 Chinese organizations on an export restriction list to curb China’s advancement in artificial intelligence. The list restricts these organizations’ access to certain semiconductors produced by Nvidia ( NVDA ) and Advanced Micro Devices, Inc. ( AMD )

China is a crucial market for semiconductors, and ongoing restrictions on sales to some of its businesses could hurt Nvidia’s revenue.

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NVDA Price Action: At the time of writing, Nvidia ( NVDA ) stock is trading 5.83% lower at $113.67, according to data from Benzinga Pro.

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