Trump Signals Flexibility on Tariffs

FINANCE
Trump Signals Flexibility on Tariffs

President Donald Trump signaled he’s open to “flexibility” on tariffs but showed little interest in granting further exemptions to specific industries. His comments came Friday during a meeting in the Oval Office, where he emphasized that offering exceptions to one industry could lead to a flood of similar requests. Still, he acknowledged that “flexibility” would apply in certain cases—particularly when tariffs are reciprocal.

Since taking office, Trump has implemented a 20% tariff on Chinese imports and fluctuating 25% duties on Canadian and Mexican goods. He granted a temporary exemption to the auto industry for vehicles compliant with the US-Mexico-Canada Agreement (USMCA), but that exemption is set to expire early next month. Tariffs on steel, aluminum, microchips, pharmaceuticals, and EU goods remain in play.

Trump stressed he hasn’t shifted on his tariff stance, though he said, “flexibility is an important word.” The White House declined to elaborate on his definition of that term.

Markets, rattled by recent volatility from trade tensions, rebounded slightly after Trump’s comments. The S&P 500 finished up 0.08%, recovering from a 1.6% dip earlier in the day. The Dow and Nasdaq also posted modest gains.

Trump reiterated plans to impose reciprocal tariffs starting April 2, targeting countries that tax U.S. goods or use non-tariff barriers. He also announced he’ll speak with Chinese President Xi Jinping soon, although no date was confirmed. China has responded to Trump’s tariffs with retaliatory duties on U.S. agricultural products, further intensifying the ongoing trade standoff.

TECH
China’s Open-Source AI Breakthrough

China is rapidly embracing open-source AI, a move insiders call an "Android moment" for the industry. Leading the charge is DeepSeek, whose R1 model has challenged U.S. tech dominance and sparked widespread AI adoption. While the model itself is free under an MIT license, DeepSeek monetizes via low-cost APIs, undercutting OpenAI and Anthropic.

Analysts say DeepSeek’s open-source success has pressured major Chinese firms like Baidu, Alibaba, and Tencent to follow suit, releasing models and tools for free. Baidu recently launched Ernie 4.5 and Ernie X1, planning to open-source them by June. Even smaller firms like ManusAI and Zhipu AI are pledging open-source initiatives, inspired by community-driven innovation. Experts believe this marks a shift from proprietary to open-source models, reshaping China's AI landscape and pushing down costs. While OpenAI continues with a closed model backed by billions in funding, many now question its sustainability amid free and powerful competition.

Some U.S. companies are already using DeepSeek’s R1, showing that open-source innovation transcends borders. Hedge fund manager Tim Wang says this strategy is helping China close the AI gap with the U.S., estimating it has shrunk to just 3–6 months. Meanwhile, Alibaba Chairman Joe Tsai emphasizes the global benefits of open-source AI, arguing it empowers everyone from startups to enterprises. As DeepSeek drives a shift toward open models, many believe the future of AI may no longer be about which country leads, but about how open the road ahead truly is.

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