In a significant escalation of US-China trade tensions, Nvidia announced a $500 billion investment in domestic AI chip manufacturing in Texas and Arizona. Concurrently, the Trump administration initiated investigations into semiconductor and pharmaceutical imports under national security grounds, potentially leading to new tariffs. These inquiries, part of Section 232 of the Trade Expansion Act, come as Trump plans to announce specific rates for semiconductor tariffs soon. Meanwhile, US stocks surged following a temporary tariff exemption for electronics. Analysts remain concerned about the broader implications for market stability amid ongoing trade volatility.