Tariffs

Nintendo’s stock hit a two-month high, fueled by the successful launch of the Switch 2 and its safe-haven status amid market volatility. The new console sold over 3.5 million units in its first four days, surpassing the original Switch’s launch performance and setting a new company record. Analysts attribute this to strong hardware sales and the gaming sector’s resilience against trade tensions, impacting other Japanese gaming companies positively.

JPMorgan Chase CEO Jamie Dimon expresses caution about the U.S. economy’s prospects, anticipating potential headwinds. He cites cooling effects after government stimuli, the impact of previous administrations policies, and concerns in the private credit sector. Dimon suggests a potential economic slowdown with rising inflation and acknowledges the complexity added by factors like reduced immigration. Despite resilient job growth, he advises businesses and investors to prepare for challenges.

TSMC CEO C.C. Wei, addressing a shareholder meeting, acknowledged the indirect impact of US tariffs. While recognizing potential price and demand fluctuations, Wei remained optimistic about the semiconductor industry, particularly AI chips. He highlighted strong, consistently unmet demand for AI processors and confidently forecast a “very good” outlook for TSMC over the next decade.

The EU is bracing for potential trade escalation with the US following Trump’s tariff threats, particularly on steel and aluminum. The EU warns of retaliatory measures if new duties are imposed, and views upcoming talks with the US as crucial for de-escalation. Focused on protecting its economic interests, the EU seeks negotiation to remove tariffs and address trade barriers in key sectors, with significant countermeasures already prepared.

The EU is preparing retaliatory measures in response to the Trump administration’s decision to double steel and aluminum tariffs. The EU Commission views this as detrimental to resolving trade disputes through negotiation and will implement countermeasures if necessary. Canada also faces potential economic strain due to disrupted supply chains and possible job losses. Despite a legal challenge within the US, the tariffs are moving forward, signaling escalating trade tensions.

A US federal court has blocked the former President’s attempts to impose tariffs on imported goods, including those from Apple, citing overreach of executive power. This decision led to a market rally as it averted potentially crippling tariffs on iPhones and other smartphones. Analysts warned of significantly increased prices and difficult logistics if production shifted to the US, potentially taking years and drastically impacting consumer spending.

President Trump delayed implementing 50% tariffs on EU goods to July 9 amid ongoing trade talks, offering temporary relief but prompting analysts to warn of persistent market risks. Despite brief optimism in sectors like tech, experts caution the six-week extension may only pause, not resolve, tensions. Berenberg’s economist suggested a potential 10% tariff compromise, though EU retaliation looms if rates rise. Trump’s confrontational tactics and unclear objectives fuel uncertainty, with the EU’s phased proposals colliding with U.S. protectionism. Markets remain volatile as investors monitor negotiations, bracing for supply chain disruptions and inflation should talks collapse, signaling a turbulent summer of trade brinkmanship. (98 words)

Former U.S. President Donald Trump has threatened 25% tariffs on iPhones unless Apple shifts production stateside, with similar pressures on Samsung, per recent reports. Analysts dismiss the feasibility, noting Apple’s deep reliance on China’s integrated supply chain and the prohibitive costs of relocating manufacturing. TF International’s Ming-Chi Kuo estimates Apple would prioritize absorbing tariffs over restructuring supply lines, while Wedbush’s Dan Ives warns U.S. production could raise iPhone prices to $3,500, crippling demand. Both analysts deem the proposal politically driven and economically unviable.

Former President Donald Trump intervened during his Middle East tour to halt Apple’s India manufacturing expansion, urging Tim Cook to prioritize U.S. production amid rising import tariffs that could increase iPhone prices for American consumers by $190. Despite India’s 60% year-on-year production growth (valued at $2.2 billion) and intensified Foxconn investments there, 80% of iPhones shipped to the U.S. remain China-made. Trump’s tariff threats cost Apple $900 million in Q1 projections, with shares dropping 15% YTD versus the Nasdaq’s 12% gain. Analysts question whether achieving Washington’s domestic manufacturing goals—including 3nm chips and iOS 19 features—can avoid disrupting geopolitical dynamics and investor expectations.