Nvidia is caught in the middle of an escalating trade war between the world’s two largest economies. Nvidia on Tuesday said it will take a $5.5 billion financial hit after Washington placed fresh restrictions on the export of its H20 artificial intelligence chips to China,

A protracted trade war could trigger a global recession and shift the balance of power in ways that fundamentally undermine U.S. standing in the world.

China replaced its trade representative as Beijing and Washington remain at an impasse over the conditions for talks to cool the escalating trade war.