Trump Threatens 25% EU Tariffs

FINANCE
Trump Threatens 25% EU Tariffs

U.S. President Donald Trump threatened to impose 25% tariffs on imports from the European Union, claiming the bloc was formed to undermine the U.S. During his first Cabinet meeting of his second term, he announced duties on Canada and Mexico would take effect on April 2, with EU tariffs to follow.

Trump criticized the EU for restricting American exports while benefiting from free access to U.S. markets. He argued the EU had “taken advantage” of the U.S. and vowed to act. The European Commission pushed back, stating the EU has boosted trade and reduced costs for American businesses.

Economists warn tariffs could raise prices for U.S. consumers and escalate trade tensions. The EU has threatened proportionate countermeasures. With a trade surplus in goods but a deficit in services, Europe remains a crucial partner. Despite tensions, Trump signaled potential trade deals with the U.K., which has a more balanced trade relationship.

TECH
Nvidia CEO Dismisses AI Competition

Nvidia CEO Jensen Huang dismissed concerns over Chinese AI startup DeepSeek impacting demand for its chips, emphasizing “extraordinary” interest in its next-gen Blackwell platform. On the company’s earnings call, Huang reiterated that AI-driven data centers are the future, with major firms like Meta, Amazon, Google, and Microsoft investing $320 billion in AI infrastructure.

Despite Nvidia’s record-breaking $600 billion market cap loss following DeepSeek’s breakthrough, demand for its chips remains strong. Nvidia sold $11 billion worth of Blackwell chips in the quarter, and Huang noted customers are “anxious and impatient” to receive them.

Acknowledging previous delays due to overheating issues, he assured future updates will be smoother. He also downplayed the impact of U.S. export controls on China sales, though revenue there has halved. Huang believes AI’s potential is vast, stating, “No technology has ever had the opportunity to address a larger part of the world’s GDP than AI.”

FINANCE
GM Announces $6B Stock Buyback

General Motors is ramping up shareholder rewards with a $6 billion stock buyback and a dividend increase, despite uncertainty over U.S. trade policy. Announced Wednesday, the move follows previous repurchases totaling $37.7 billion since 2015, reinforcing investor confidence amid policy shifts under President Trump.

CFO Paul Jacobson reassured investors, stating GM’s balance sheet remains strong and the company is prepared to adapt to any regulatory changes. The automaker aims to complete $2 billion in buybacks by the second quarter and will raise its dividend to 15 cents per share.

GM shares rose 6.1% following the news. Despite risks from potential tariffs on Mexico and Canada and reduced government support for EVs, GM is maintaining its $11-$13 billion free cash flow target for 2025. Instead of prioritizing new investments, the company is choosing to return capital to shareholders, positioning itself strategically amid shifting policy landscapes.

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.