US

New Jersey criminalises the harmful use of AI deepfakes

New Jersey has become one of several US states to criminalise the creation and distribution of deceptive AI-generated media, commonly known as deepfakes. Governor Phil Murphy signed the legislation on Wednesday, introducing civil and criminal penalties for those who produce or share such media.

If deepfakes are used to commit further crimes like harassment, they may now be treated as a third-degree offence, punishable by fines up to $30,000 or up to five years in prison.

The bill was inspired by a disturbing incident at a New Jersey school where students shared explicit AI-generated images of a classmate.

Governor Murphy had initially vetoed the legislation in March, calling for changes to reduce the risk of constitutional challenges. Lawmakers later amended the bill, which passed with overwhelming support in both chambers.

Instead of ignoring the threat posed by deepfakes, the law aims to deter their misuse while preserving legitimate applications of AI.

‘This legislation takes a proactive approach,’ said Representative Lou Greenwald, one of the bill’s sponsors. ‘We are safeguarding New Jersey residents and offering justice to victims of digital abuse.’

A growing number of US states are taking similar action, particularly around election integrity and online harassment. While 27 states now target AI-generated sexual content, others have introduced measures to limit political deepfakes.

States like Texas and Minnesota have banned deceptive political media outright, while Florida and Wisconsin require clear disclosures. New Jersey’s move reflects a broader push to keep pace with rapidly evolving technology and its impact on public trust and safety.

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Are digital taxes the new frontline in global trade warfare?

While President Trump’s tariffs on goods dominate headlines, a more consequential battle is brewing over digital services. US tech giants like Meta, Google, and Amazon wield unparalleled global dominance in this sector.

In just-in-time analysis, Jovan Kurbalija argues that Trump’s fixation on traditional trade levers (steel, cars) overlooks a critical vulnerability for the United States: the use of digital services taxes (DSTs) and regulatory pressure by the EU and other trading partners to counterbalance new US tariff.

The collapse of OECD-led multilateral tax negotiations in 2024 has triggered a resurgence of unilateral DSTs, from Canada’s retroactive levy to India’s expanded ‘equalization levy’ and revived EU proposals for bloc-wide digital taxes.

Kurbalija analyses how digital taxation redefines trade diplomacy, with implications ranging from recalibrated leverage (host nations exploiting US tech dependence) to governance gaps (WTO rules ill-equipped for digital disputes). It poses new challenges for digital diplomacy, AI negotiations, and internet governance.

He warns that failure to address this ‘invisible trade war’ could escalate tit-for-tat measures, jeopardizing both physical goods trade and the digital economy. The rise of data and sovereignty will be inevitable.

Ultimately, the piece underscores a paradigm shift: in the 21st-century economy, algorithms, and data flows are as strategically vital as steel beams—and more impactful for economic well-being and global prosperity.

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Retail stocks slump after tariff shock

Retail giants are facing sharp declines in after-hours trading as new tariffs from the US on imports from China, the European Union, and Vietnam begin to rattle markets. Walmart and Amazon both saw their shares fall, with Nike also heavily impacted due to its dependence on Chinese manufacturing.

Walmart’s drop of over 4% reflects its heavy reliance on Chinese imports, with roughly 70% of its merchandise tied to the country. Amazon, similarly exposed through its third-party sellers, dipped close to 5% amid fears that rising costs will force sellers to raise prices, dampening consumer demand. These developments could severely affect the upcoming holiday shopping season.

Nike, meanwhile, saw shares fall by more than 6% as news emerged that many of its products, including popular sneakers, are produced in China and Vietnam. Although the company has been diversifying production to Vietnam, the move offers little relief now, as Vietnam faces an even steeper 46% tariff. The new policies may force widespread price hikes, putting further pressure on consumers and the broader retail sector.

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Alphawave acquisition eyed by arm for AI advancements

Arm Holdings, owned by SoftBank, recently considered acquiring UK-based semiconductor IP supplier Alphawave to bolster its artificial intelligence processor technology.

The focus was on Alphawave’s ‘serdes’ technology, essential for rapid data transfer in AI applications requiring interconnected chips.

Despite initial discussions, Arm decided against pursuing the acquisition. Alphawave had been exploring a sale after attracting interest from Arm and other potential buyers.

Alphawave’s joint venture in China, WiseWave, added complexity to the potential deal due to national security concerns raised by US officials.

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US robotics firms seek federal support amid China’s rapid growth

Following the US’s first-ever Enterprise Artificial Intelligence Strategy in October 2024, leading robotics companies are urging the government to develop a national robotics strategy and establish a federal office to support the industry.

The push comes as China accelerates its robotics investments, raising concerns about US competitiveness in the global market.

Executives from Tesla, Boston Dynamics, and Agility Robotics showcased their latest innovations on Capitol Hill this week, advocating for policies that bolster domestic production and adoption of robots.

Jeff Cardenas, CEO of Apptronik, highlighted how the United States once led the field but lost ground to Japan and Europe. Tesla’s Jonathan Chen added that manufacturing at scale remains a key challenge.

The Association for Advanced Automation warned that without strong federal leadership, the US risks falling behind in both robotics and AI. Meanwhile, China continues expanding its robotics sector, with a state-backed fund aiming to attract $138 billion over two decades.

According to the International Federation of Robotics, China now leads in industrial robot usage, with 1.8 million in operation as of 2023.

With global investment in robotics projected to exceed $13 billion by 2025, US industry leaders stress that a national strategy is essential to maintaining a competitive edge.

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EU regulators seek common approach on DSA

The Coimisiún na Meán has warned that differing interpretations of the Digital Services Act (DSA) by EU regulators are hindering a unified approach to online platform regulation.

Maria Donde, Director of International Affairs at Coimisiún na Meán, highlighted the challenges of aligning various regulators’ approaches to the DSA, which has left room for interpretation.

She emphasised the importance of finding common ground, especially as the DSA, which came into effect last February, imposes transparency and election integrity requirements on platforms.

The DSA requires each EU member state to appoint a Digital Services Coordinator as a point of contact for platforms. Ireland, home to major platforms like TikTok and X, is at the forefront of enforcement.

Donde stressed the need for a consistent voice within the EU, particularly as the law faces criticism globally. The US government has condemned the EU’s regulatory approach, calling it a threat to free speech and accusing Europe of sidelining US tech companies.

The European Commission has already initiated several investigations under the DSA, targeting platforms such as X, TikTok, and Temu. These probes are ongoing, with potential fines for non-compliance reaching up to 6% of a company’s global turnover.

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TikTok ban threatens 170 million American users

The US is just days away from imposing a ban on TikTok unless a deal is struck with its Chinese parent company ByteDance. The ban, set to take effect on Saturday, would affect 170 million American users of the popular app.

However, President Donald Trump has expressed confidence that an agreement will be reached in time. He extended the deadline from January to April 5 to give ByteDance more time to find a non-Chinese buyer for TikTok’s US operations.

Trump mentioned that there is significant interest from potential buyers, with private equity firm Blackstone reportedly evaluating a minority investment in TikTok’s US business.

The discussions are centred on ByteDance’s existing non-Chinese shareholders, including Susquehanna International Group and General Atlantic. Washington’s main concern is that TikTok’s ownership by ByteDance allows the Chinese government to potentially influence the app and collect data on Americans.

Despite the pressure, TikTok has yet to comment on the situation. If no agreement is reached by the deadline, TikTok faces the risk of being banned, though the app would remain on users’ devices if already installed. However, new users would not be able to download it.

The app is already banned in countries like India over similar national security concerns.

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US fabs to catch up with Taiwan tech

TSMC says future chip factories in the US will take two years or less to complete, a big step forward from the five years needed for its first Arizona plant. The goal is to narrow the technology gap with its cutting-edge Taiwanese fabs.

While the first US fab makes chips on a 4nm process, TSMC aims to start 3nm production in 2028 and reach 2nm ‘before 2030.’ This would bring American output closer to the most advanced nodes used in Taiwan.

For Apple, which relies heavily on TSMC, the move reduces geopolitical risks tied to China–Taiwan tensions. Critics, however, point out that all R&D remains in Taiwan, limiting the US’s chances of true semiconductor leadership.

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US airlines struggle as travel demand drops

Just months after predicting a booming future, US airlines are now grappling with economic uncertainty as rising tariffs and government spending cuts dampen travel demand. Consumers and businesses are cutting back on trips, forcing major carriers to lower profit forecasts for the first quarter.

The industry’s outlook for the rest of the year has also dimmed as fears of slow economic growth and high inflation persist.

The S&P 500 passenger airlines index has fallen 15% this year, with stocks of major carriers like Delta and United dropping around 20%. With demand slowing, airlines have begun reducing flight schedules to avoid fare cuts and protect profit margins.

Several airlines, including Delta, United, and American Airlines, have trimmed their April-to-June capacity, while United’s CEO has warned of further cuts if demand does not recover by late summer.

Adding to the industry’s woes, concerns over airline safety have surged, contributing to the travel slowdown. Meanwhile, US consumer confidence has plunged to a four-year low, and airfares posted their first year-on-year decline in six months.

While airlines remain hopeful that full-year earnings targets will hold, sustained weak demand during the peak summer season could force further adjustments.

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Trump weighs tariff cuts to secure TikTok deal

US President Donald Trump has indicated he is willing to reduce tariffs on China as part of a deal with ByteDance, TikTok’s Chinese parent company, to sell the popular short-video app.

ByteDance faces an April 5 deadline to divest TikTok’s US operations or risk a nationwide ban over national security concerns.

The law mandating the sale stems from fears in Washington that Beijing could exploit the app for influence operations and data collection on American users.

Trump suggested he may extend the deadline if negotiations require more time and acknowledged China’s role in the deal’s approval. Speaking to reporters, he hinted that tariff reductions could be used as leverage to finalise an agreement.

China’s commerce ministry responded by reaffirming its stance on trade discussions, stating that engagement with Washington should be based on mutual respect and benefit.

The White House has taken an active role in brokering a potential sale, with discussions centring on major non-Chinese investors increasing their stakes to acquire TikTok’s US operations. Vice President JD Vance has expressed confidence that a framework for the deal could be reached by the April deadline.

Free speech advocates, meanwhile, continue to challenge the law, arguing that banning TikTok could violate the First Amendment rights of American users.

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