US president Donald Trump on Saturday announced an additional tariff of 10% on imports from China and 25% on those from Mexico and Canada to the apparent surprise of investors, who had underpriced such risk. The tech-heavy Nasdaq ( ^IXIC) was off more than 2% Monday morning. Nvidia stock pared losses and ended the day down 2.8%.

Nvidia (NASDAQ: NVDA) is known for its dominance in artificial intelligence (AI) chips, holding about 80% of the market. Nvidia chief Jensen Huang has even said that, over time, Nvidia's chips are the best deal as they save on total cost of ownership.

One of the biggest stories from last week underscores just how critical AI has become—not just for Silicon Valley, but for America’s national security.

The chip maker's shares were falling with the wider market after the U.S. president said he intends to impose levies on imported semiconductors.