President Donald Trump speaks to members of the press before departing from the White House en route to Dayton, Ohio and El Paso, Texas on August 7, 2019 in Washington, DC.
Zach Gibson | Getty Images
President Donald Trump said Friday the U.S. will cut ties with Chinese telecom giant Huawei, but that could change if there’s a trade deal with China.
The move on Huawei came after China halted buying American agricultural products in retaliation for Trump’s surprise tariffs threat last week. It also allowed its currency, the yuan, to drop against the dollar to a key level unseen since 2008.
Chip stocks took a big hit following the news. Micron Technology dropped almost 3% on Friday while Advanced Micro Devices traded nearly 2% lower. Skyworks Solutions fell more than 4%.
The administration blacklisted Huawei in May for national security concerns, preventing it from buying U.S. chips. But Trump last month agreed to give “timely licensing decisions” to allow a slew of tech companies including Google and Broadcom to sell to the Chinese telecom giant.
This is a developing story. Check back for updates.
