President Trump invokes emergency powers to impose tariffs on imports from Canada and Mexico, citing their failure to curb drug trafficking and lethal drugs like fentanyl flowing into the U.S., which he deems a national security threat causing overwhelming crime and overdose deaths.
Mounting fears of stagflation, driven by Trump's tariffs and softening economic indicators, are fueling market volatility and raising concerns about high inflation coupled with sluggish growth, though a severe crisis has not yet materialized.
Arrests in Singapore over potential unauthorized exports of Nvidia's AI chips to China have raised alarms, as analysts warn a comprehensive ban could cost the company billions in lost revenue this fiscal year, highlighting geopolitical tensions surrounding advanced technology.
In an escalating trade war, President Trump imposed steep 25% tariffs on imports from key allies Canada and Mexico, while also doubling tariffs on Chinese imports to 20%, sending stock markets plunging amid fears of a global trade conflict.
Microsoft urges the US government to ease semiconductor export restrictions, warning that the curbs could backfire by driving allies to seek chips from China, potentially boosting China's AI capabilities and self-reliance in a strategic misstep that undermines America's lead in the global AI race.
In retaliation against the U.S.'s unjustified tariffs on Canadian exports, Canada strongly condemns the move and imposes 25% tariffs on $155 billion worth of American goods, with $30 billion effective immediately and the remaining $125 billion in 21 days, until the U.S. trade action is withdrawn.
In a move to combat the opioid crisis, the President has decided to increase tariffs on Chinese products from 10% to 20%, citing China's failure to take sufficient measures to address the synthetic opioid supply chain that fuels the drug epidemic.
Stock markets plunged on Friday, with the S&P 500 falling 1.76% and the Dow Jones Industrial Average dropping 649.67 points, as President Trump confirmed that 25% tariffs on imports from Mexico and Canada will take effect on Tuesday, dashing hopes of a last-minute deal to avert the full tariffs.
Nvidia's CEO Jensen Huang revealed that the company's revenue in China was slashed in half due to export controls, shedding light on the significant impact of trade restrictions on the tech giant's business operations in the Chinese market.
Markets were rattled as stocks and bitcoin plummeted due to fears surrounding President Trump's tariff plans, his aggressive cost-cutting mission, declining consumer confidence stemming from inflation worries, and the increasing alignment of cryptocurrency markets with traditional markets.