Semiconductor stocks fell sharply on Monday amid worries that companies in China are using workarounds to get the latest offerings from Nvidia (NASDAQ:NVDA) and President Trump's announcement that tariffs will go into effect tomorrow on Canada and Mexico.

Nvidia faces continued concerns about potential restrictions on exports of its AI hardware amid reports that advanced chips are reaching China despite U.S. sanctions.

Nvidia stock fell as much as 5% Monday as reports surfaced of the tech giant’s AI chips reaching China, raising investor fears the company might face more scrutiny around its exports.

China has American agricultural exports in its cross hairs as it prepares countermeasures against fresh U.S. import tariffs, China's state-backed Global Times reported, raising the stakes in an escalating trade war between the world's top two economies.

U.S. President Donald Trump last week threatened China with the extra 10% duty, resulting in a cumulative 20% tariff, while accusing Beijing of not having done enough to halt the flow of fentanyl into America, which China's commerce ministry said was tantamount to "blackmail."

China is considering retaliatory measures on US agriculture and food products in response to tariffs from the Trump administration that are scheduled to take effect on Tuesday, according to the Global Times.