Just a day following reports that Huawei Technologies would get a three-month extension on a key license, President Donald Trump said Sunday that he doesn't want to do business "at all" with the Chinese tech company, because it is a national security threat.
"I don't want to do business at all because it is a national security threat," Trump was quoted as telling reporters, according to CNBC. "We'll see what happens. I'm making a decision tomorrow."
Earlier, it was reported that Huawei Technologies would be granted a 90-day extension of a license that has enabled the company to continue working with U.S. customers despite national-security concerns that prompted the Trump administration to place it on an export blacklist earlier this year.
Citing an administration official, The Wall Street Journal reported on Saturday that U.S. Commerce Department officials will likely announce on Monday that they will grant the 90-day extension. The planned extension was initially reported by Reuters on Friday.
The Commerce Department in May issued a ban against Huawei, the world's largest telecommunications company, placing it and its affiliates on an export blacklist, citing national-security concerns.
U.S. officials have warned that Huawei products could be used to spy on or disrupt telecom networks. Huawei officials have denied these claims.
The blacklisting escalated trade tensions between the U.S. and China, which have been dominating financial markets' attention over the summer. Negotiators from both countries are set to meet next month, though President Donald Trump said this week that he felt more recent discussions were "going well."
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The ban has sparked turmoil for U.S. chipmakers who supply Huawei with semiconductors and other parts for its mobile phones and other products and devices, impacting their sales and earnings and in turn their share prices.
While the Philadelphia Semiconductor Index (SOXX - Get Report) has recovered roughly 25% from the lows it saw in early June amid Huawei-related fears, analysts and market watchers continue to expect mixed numbers from chipmaking firms.
Semiconductor stocks including Nvidia (NVDA - Get Report) , Intel (INTC - Get Report) , Broadcom (AVGO - Get Report) , Micron (MU - Get Report) and others took a beating in May -- partly on trade worries but mostly due to the U.S. ban on Huawei products.
The negative sentiment was crystallized in a grim outlook by Broadcom in mid-June, in which the company lowered its full-year outlook and warned investors not to expect a turnaround in 2019.
This story has been updated.