Trump’s Tariff Strategy Sparks Market Uncertainty

FINANCE
Trump’s Tariff Strategy Sparks Market Uncertainty

President Donald Trump’s tariff strategy on Canada, Mexico, and China has left markets uncertain. Initially, he announced steep tariffs on North American neighbors, only to pause them for a month after securing border security commitments. Meanwhile, a 10% levy on Chinese imports remains in place.

Market analyst Ed Yardeni believes Trump’s goal is energy dominance through a North American security zone. The U.S. relies on Canada’s 3.9 million daily oil barrels, making it an indispensable partner, while Mexico remains a key supplier. Tariffs may be a negotiation tool to bring Canada closer under U.S. influence.

This aligns with Project 2025, advocating for Western Hemisphere energy independence and reducing reliance on China. However, Trump’s unpredictability poses risks, with rolling tariff threats potentially disrupting markets. Capital Economics warns that ongoing delays and negotiations could drag out, creating economic uncertainty through 2025.

TECH
Big Tech Boosts AI Investment to $320B

Tech giants Meta, Amazon, Alphabet, and Microsoft plan to invest $320 billion in AI and data centers in 2025, up from $230 billion in 2024. Amazon leads with $100 billion, followed by Microsoft ($80B), Alphabet ($75B), and Meta ($60–$65B).

The AI boom, fueled by ChatGPT’s success and rising competition, has led companies to scale infrastructure with Nvidia GPUs. However, concerns over China’s DeepSeek AI triggered a $800 billion market selloff in AI chip stocks last week.

Despite supply shortages impacting cloud revenues, tech firms remain committed to AI expansion. Amazon’s CEO calls it a “once-in-a-lifetime” opportunity, while Microsoft is focusing on U.S.-based AI workloads. Alphabet and Meta are scaling server infrastructure for long-term AI leadership.

Apple and Tesla are also investing, though Tesla’s AI capex remains flat at $5B. Nvidia, a key AI supplier, will report earnings later this month, shaping the sector’s trajectory.

FINANCE
Musk Denies Interest in Buying TikTok

Elon Musk stated he has no interest in buying TikTok, despite speculation that he could acquire the app’s U.S. operations if ByteDance fails to prevent a ban. Speaking remotely at a German conference, Musk confirmed, “I have not put in a bid for TikTok,” adding that he doesn’t use the app and prefers building companies from scratch.

Reports suggest China is considering selling TikTok U.S. to Musk’s X, though ByteDance has publicly refused to sell. Trump, who once pushed for a TikTok ban, has since softened his stance, crediting the app for helping him win young voters.

Trump also floated the idea of Musk or Oracle’s Larry Ellison purchasing TikTok through a joint venture with the U.S. government. Meanwhile, a new executive order aims to create a sovereign wealth fund that could help facilitate TikTok’s sale, though China would have to approve any deal.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.