Qualcomm (QCOM) shares plummeted 7.17% in intraday trading on Friday, as the semiconductor industry faced a severe blow following China's announcement of retaliatory tariffs. The Chinese government declared a 34% import tariff on all US goods, escalating the ongoing trade dispute between the two economic powerhouses.

The news sent shockwaves through the tech sector, with semiconductor stocks experiencing significant declines across the board. Qualcomm's sharp drop was part of a broader trend affecting major players in the industry. Other notable declines included Micron Technology falling 7%, Advanced Micro Devices down 6%, and Intel slumping about 6%.

Analysts warn that the impact on the semiconductor industry could be substantial, despite chips being initially exempted from US tariffs. Chris Caso of Wolfe Research noted that the "much more significant impact is, rather, the tariffs that will be imposed on finished goods containing semiconductors." This suggests that companies like Qualcomm, which rely heavily on global supply chains and markets, may face ongoing challenges as trade tensions continue to escalate.

However, it's worth noting that Qualcomm might be less exposed to direct tariff impacts compared to some of its peers. According to a J.P. Morgan analysis, only about 3% of Qualcomm's hardware revenue is likely to be affected by the tariffs, and the company may not need to raise prices significantly. Despite this, the overall market sentiment and potential disruptions to the global semiconductor supply chain appear to be weighing heavily on Qualcomm's stock price. Investors are now closely watching how tech companies will navigate this uncertain economic landscape and whether they can mitigate the potential long-term effects of these tariffs on their operations and profitability.