E-commerce and trade

Temu and Shein to raise US prices due to new tariffs

Fast fashion giants Temu and Shein have warned US shoppers to expect price hikes from next week, as sweeping new tariffs on Chinese imports come into effect under Donald Trump’s trade policy.

Both companies will lose access to the ‘de minimis’ exemption, which has allowed packages under $800 to enter the US duty-free. That change, taking effect from 2 May, will significantly raise costs for low-cost retailers who depend on cheap cross-border shipments.

The tariffs, which now reach up to 145%, are part of Trump’s escalating trade war with China. His revised plans impose a tax of $75 per item, rising to $150 by June, for shipments that were previously exempt.

Shein has told customers its operating expenses have risen and prices will be adjusted from 25 April in an effort to maintain product quality while absorbing the new costs.

In response to the tariffs and likely slowdown in US demand, both companies have also scaled back digital advertising.

According to Sensor Tower, Temu’s average US ad spend across major platforms dropped by 31% over two weeks, while Shein’s spending fell 19%.

The tariffs are expected to reshape fast fashion in the US, though some experts believe prices may still remain competitive compared to domestic alternatives.

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TSMC profits surge despite trade concerns

Taiwan Semiconductor Manufacturing Company (TSMC) posted a significant jump in quarterly profits, driven by robust demand for AI chips. Net income rose by just over 60% year-on-year to NT$360.7bn (£9.77bn), outpacing analysts’ expectations.

Revenue also grew by 41.6% compared to the same period in 2024, although it dipped slightly from the previous quarter due to weaker smartphone sales.

The world’s largest contract chipmaker has not yet seen any major changes in customer behaviour, including from Apple and Nvidia, despite increasing uncertainty over potential US tariffs on Taiwanese semiconductors.

While concerns about trade tensions grow, particularly with former President Donald Trump suggesting the US should reclaim chip production, TSMC says it is continuing with business as usual for now.

Instead of scaling back, TSMC is expanding its investment in the US, with plans to spend up to $160bn. Analysts believe this move could help the firm argue for a more favourable position should tariff negotiations intensify.

The company’s Chief Financial Officer, Wendell Huang, acknowledged the risks posed by changing trade policies but said revenue growth is still expected in the next quarter.

Despite global pressures, TSMC remains optimistic, forecasting revenue between $28.4bn and $29.2bn. Although the company’s shares have fallen more than 20% so far this year, some analysts say the stock is now undervalued and well-positioned to rebound once market conditions stabilise.

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Gemini Live screensharing now free for all Android users

Google has announced that Gemini Live’s screen and camera sharing capabilities will now be free for all Android users through the Gemini app.

The AI feature, which enables the app to interpret and respond to real-time visuals from a device’s screen or camera, had initially launched exclusively for Pixel 9 and Samsung Galaxy S25 users.

The company originally planned to restrict wider access to those subscribed to Gemini Advanced, but has now reversed that decision following strong user feedback. Google confirmed the broader rollout is beginning today and will continue over the coming weeks.

A promotional video released by the company demonstrates the feature in action, with a user pointing their phone camera at an aquarium while Gemini provides information about the marine life.

In a similar move, Microsoft has launched its own AI tool, Copilot Vision, for free via the Edge browser.

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AMD warns of financial hit from US AI chip export ban

AMD has warned that new US government restrictions on exporting AI chips to China and several other countries could materially affect its earnings.

The company said it may face charges of up to $800 million related to unsold inventory, purchase commitments, and reserves if it fails to secure export licences for its MI308 GPUs, now subject to strict control measures.

In a filing to the US Securities and Exchange Commission, AMD confirmed it would seek the necessary licences but admitted there is no guarantee they will be granted.

The move follows broader export restrictions aimed at protecting national security interests, with US officials arguing that unrestricted access to advanced chips would weaken the country’s strategic lead in AI, instead of preserving it.

AMD’s stock dropped around 6% following the announcement. Competitors are also feeling the impact. Nvidia expects charges of $5.5 billion from similar restrictions, and Intel’s Gaudi hardware line has reportedly been affected as well.

The US Commerce Department has defended the move as necessary to safeguard economic and national interests.

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xAI pushes Grok forward with memory update

Elon Musk’s AI venture, xAI, has introduced a new ‘memory’ feature for its Grok chatbot in a bid to compete more closely with established rivals like ChatGPT and Google’s Gemini.

The update allows Grok to remember details from past conversations, enabling it to provide more personalised responses when asked for advice or recommendations, instead of offering generic answers.

Unlike before, Grok can now ‘learn’ a user’s preferences over time, provided it’s used frequently enough. The move mirrors similar features from competitors, with ChatGPT already referencing full chat histories and Gemini using persistent memory to shape its replies.

According to xAI, the memory is fully transparent. Users can view what Grok has remembered and choose to delete specific entries at any time.

The memory function is currently available in beta on Grok’s website and mobile apps, although not yet accessible to users in the EU or UK.

Instead of being automatically enabled, it can be turned off in the settings menu under Data Controls. Deleting individual memories is also possible via the web chat interface, with Android support expected shortly.

xAI has confirmed it is working on adding memory support to Grok’s version on X. However, this expansion aims to deepen the bot’s integration with users’ digital lives instead of limiting the experience to one platform.

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Microsoft unveils powerful lightweight AI model for CPUs

Microsoft researchers have introduced the largest 1-bit AI model to date, called BitNet b1.58 2B4T, designed to run efficiently on standard CPUs instead of relying on GPUs. This ‘bitnet’ model, now openly available under the MIT license, can even operate on Apple’s M2 chips.

Bitnets use extreme weight quantisation, storing only -1, 0, or 1 as values, making them far more memory- and compute-efficient than most conventional models.

With 2 billion parameters and trained on 4 trillion tokens, roughly the equivalent of 33 million books, BitNet b1.58 2B4T outperforms several similarly sized models in key benchmarks.

Microsoft claims it beats Meta’s Llama 3.2 1B, Google’s Gemma 3 1B, and Alibaba’s Qwen 2.5 1.5B on tasks like grade-school maths and physical reasoning. It also runs up to twice as fast while using significantly less memory, offering a potential edge for lower-end or energy-constrained devices.

The main limitation lies in its dependence on Microsoft’s custom bitnet.cpp framework, which supports only select hardware and does not yet work with GPUs.

Instead of being broadly compatible with existing AI systems, BitNet’s performance depends on a narrower infrastructure, a hurdle that may limit adoption, despite its promise for lightweight AI deployment.

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Google uses AI and human reviews to fight ad fraud

Google has revealed it suspended 39.2 million advertiser accounts in 2024, more than triple the number from the previous year, as part of its latest push to combat ad fraud.

The tech giant said it is now able to block most bad actors before they even run an advert, thanks to advanced large language models and detection signals such as fake business details and fraudulent payments.

Instead of relying solely on AI, a team of over 100 experts from across Google and DeepMind also reviews deepfake scams and develops targeted countermeasures.

The company rolled out more than 50 LLM-based safety updates last year and introduced over 30 changes to advertising and publishing policies. These efforts, alongside other technical reinforcements, led to a 90% drop in reports of deepfake ads.

While the US saw the highest number of suspensions, with all 39.2 million accounts coming from there alone, India followed with 2.9 million accounts taken down. In both countries, ads were removed for violations such as trademark abuse, misleading personalisation, and financial service scams.

Overall, Google blocked 5.1 billion ads globally and restricted another 9.1 billion, instead of allowing harmful content to spread unchecked. Nearly half a billion of those removed were linked specifically to scam activity.

In a year when half the global population headed to the polls, Google also verified over 8,900 election advertisers and took down 10.7 million political ads.

While the scale of suspensions may raise concerns about fairness, Google said human reviews are included in the appeals process.

The company acknowledged previous confusion over enforcement clarity and is now updating its messaging to ensure advertisers understand the reasons behind account actions more clearly.

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EU plans major staff boost for digital rules

The European Commission is ramping up enforcement of its Digital Services Act (DSA) by hiring 60 more staff to support ongoing investigations into major tech platforms. Despite beginning probes into companies such as X, Meta, TikTok, AliExpress and Temu since December 2023, none have concluded.

The Commission currently has 127 employees working on the DSA and aims to reach 200 by year’s end. Applications for the new roles, including legal experts, policy officers, and data scientists, remain open until 10 May.

The DSA, which came into full effect in February last year, applies to all online platforms in the EU. However, the 25 largest platforms, those with over 45 million monthly users like Google, Amazon, and Shein, fall under the direct supervision of the Commission instead of national regulators.

The most advanced case is against X, with early findings pointing to a lack of transparency and accountability.

The law has drawn criticism from the current Republican-led US government, which views it as discriminatory. Brendan Carr of the US Federal Communications Commission called the DSA ‘an attack on free speech,’ accusing the EU of unfairly targeting American companies.

In response, EU Tech Commissioner Henna Virkkunen insisted the rules are fair, applying equally to platforms from Europe, the US, and China.

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AI chip production begins at TSMC’s Arizona facility

Nvidia has announced a major initiative to produce AI supercomputers in the US in collaboration with Taiwan Semiconductor Manufacturing Co. (TSMC) and several other partners.

The effort aims to create up to US$500 billion worth of AI infrastructure products domestically over the next four years, marking a significant shift in Nvidia’s manufacturing strategy.

Alongside TSMC, other key contributors include Taiwanese firms Hon Hai Precision Industry Co. and Wistron Corp., both known for producing AI servers. US-based Amkor Technology and Taiwan’s Siliconware Precision Industries will also provide advanced packaging and testing services.

Nvidia’s Blackwell AI chips have already begun production at TSMC’s Arizona facility, with large-scale operations planned in Texas through partnerships with Hon Hai in Houston and Wistron in Dallas.

The move could impact Taiwan’s economy, as many Nvidia components are currently produced there. Taiwan’s Economic Affairs Minister declined to comment specifically on the project but assured that the government will monitor overseas investments by Taiwanese firms.

Nvidia said the initiative would help meet surging AI demand while strengthening semiconductor supply chains and increasing resilience amid shifting global trade policies, including new US tariffs on Taiwanese exports.

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Nvidia hit by the new US export rules

Nvidia is facing fresh US export restrictions on its H20 AI chips, dealing a blow to the company’s operations in China.

In a filing on Tuesday, Nvidia revealed it now needs a licence to export these chips indefinitely, after the US government cited concerns they could be used in a Chinese supercomputer.

The company expects a $5.5 billion charge linked to the controls in its first fiscal quarter of 2026, which ends on 27 April. Shares dropped around 6% in after-hours trading.

The H20 is currently the most advanced AI chip Nvidia can sell to China under existing regulations.

Last week, reports suggested CEO Jensen Huang might have temporarily eased tensions during a dinner at Donald Trump’s Mar-a-Lago resort, by promising investments in US-based AI data centres instead of opposing the rules directly.

Just a day before the filing, Nvidia announced plans to manufacture some chips in the US over the next four years, though the specifics were left vague.

Calls for tighter controls had been building, especially after it emerged that China’s DeepSeek used the H20 to train its R1 model, a system that surprised the US AI sector earlier this year.

Government officials had pushed for action, saying the chip’s capabilities posed a strategic risk. Nvidia declined to comment on the new restrictions.

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