Donald Trump announced plans to impose tariffs on Canada and France in response to their digital services taxes on US technology companies. The former president criticised the taxes as unfair, arguing that only the United States should have the right to tax its own firms.
Canada began implementing the levy last year to ensure companies like Alphabet and Amazon contribute fairly despite often booking profits in low-tax jurisdictions.
Trump directed his economic team to develop a strategy for reciprocal tariffs against any country imposing duties on US imports. A White House fact sheet claimed that Canada and France each collect over $500 million annually from US firms through digital taxes, costing American businesses more than $2 billion per year. The statement argued that retaliatory tariffs would restore fairness to global trade.
The digital tax dispute has been a long-standing issue, with Washington previously challenging Canada’s approach under Joe Biden’s administration.
The United States had sought trade dispute consultations, calling the tax discriminatory. The office of Canadian Prime Minister Justin Trudeau has not yet commented on Trump’s latest tariff proposal.
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The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production. Sources indicate that ongoing projects under the 2022 law are being reviewed for compliance with new policy priorities, potentially leading to renegotiations or delays.
GlobalWafers, a Taiwanese company set to receive $406 million for projects in Texas and Missouri, noted that Washington has not yet communicated any changes.
However, new White House policies are reportedly under review, including those related to unionised labour and childcare for factory workers. Each subsidy agreement has unique milestones that recipients must meet to secure funding.
Concerns over companies expanding operations in China despite receiving CHIPS funding have also emerged. Intel, for example, announced a $300 million investment in a Chinese facility after receiving substantial subsidies.
The Semiconductor Industry Association has expressed its willingness to collaborate with the Trump administration to streamline program requirements and maintain progress.
Industry giants such as TSMC, Samsung, and Intel continue to navigate the shifting landscape of the CHIPS Act, with no immediate clarity on how changes will affect existing agreements. The White House has yet to respond to requests for further comment on these developments.
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A federal judge in Washington, DC has temporarily halted the US Securities and Exchange Commission’s lawsuit against Binance. The 60-day pause comes after both the SEC and the cryptocurrency exchange requested time to explore a resolution, citing the potential impact of a newly created SEC task force.
The task force, launched last month, focuses on reviewing cryptocurrency regulations and is led by Commissioner Hester Peirce, known for her pro-crypto stance.
The initiative may pave the way for progress in resolving the case, which accused Binance of inflating trading volumes, misusing customer funds, and misleading investors.
The lawsuit, filed in June 2023, targeted Binance and its founder Changpeng Zhao for alleged regulatory violations. The exchange has denied wrongdoing but continues to face scrutiny from US regulators.
A potential leadership change at the SEC could also influence the case. Paul Atkins, nominated by Donald Trump to lead the agency, is seen as supportive of the cryptocurrency industry. He would replace Gary Gensler, who has taken a stricter approach to crypto regulation.
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Taiwan‘s President Lai Ching-te has pledged to address concerns raised by former US President Donald Trump regarding Taiwan’s semiconductor industry. Speaking after a National Security Council meeting, Lai acknowledged the importance of global semiconductor supply chains and vowed to work with Taiwan’s semiconductor sector to develop strategies to address US concerns. He emphasised the need for democratic nations, including the US, to collaborate on creating a “democratic supply chain” for advanced chips, particularly in the growing AI sector.
Lai also reassured the US of Taiwan’s commitment to contributing to the international economy, noting that Taiwan, home to the world’s largest contract chipmaker, TSMC, plays a vital role in the semiconductor market. TSMC is heavily invested in the US, including a $65 billion investment in new factories in Arizona. Despite these efforts, Taiwan’s defence spending remains a topic of criticism, particularly from Trump, who has repeatedly highlighted Taiwan’s insufficient military expenditure amid increasing threats from China.
In response to US concerns, Lai revealed plans to propose a special budget to raise Taiwan’s defence spending from 2.5% of GDP to 3%. This proposal is currently being debated in parliament, where opposition parties hold a majority. Lai stressed that Taiwan’s determination to defend itself must be clear, as international allies continue to voice concerns over its defence readiness.
Finally, Lai reiterated Taiwan’s key role as a reliable trading partner to the US, especially in high-tech exports such as semiconductors. Taiwan’s trade surplus with the US surged by 83% last year, with exports reaching a record $111.4 billion.
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The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.
Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.
Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.
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Tencent, a leading Chinese tech giant, has won a significant copyright infringement case in a US district court. The ruling resulted in nearly $85 million in compensation after a Taiwan-based TV box firm, Unblock Tech, and its distributors were found guilty of violating copyrights on over 1,500 Tencent shows, including ‘Little Days’ and ‘Three Body Problem’.
The judgement was handed down by the US District Court for the Western District of Texas. Tencent units, including Tencent Penguin Film and Tencent Technology, brought the case against the defendants for copying, distributing, and importing the content without permission.
Neither Tencent nor Unblock Tech provided comments regarding the ruling.
Analyst Vivian Toh highlighted the challenges of addressing cross-border infringement, stating that Tencent’s success underscores its commitment to protecting intellectual property.
The win reflects the broader issue of video content piracy, which remains a persistent problem across global markets.
Tencent has also pursued similar cases in China, targeting TikTok and Douyin-owner ByteDance over unauthorised use of its content. The outcomes of those lawsuits have yet to be publicly disclosed.
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TikTok has returned to US app stores after President Donald Trump temporarily delayed a ban on the Chinese-owned social media platform. The app, which briefly went offline last month due to a new law requiring its parent company, ByteDance, to sell its US operations or face a ban, is now available for download again.
Despite TikTok resuming service, Google and Apple had initially removed it from their stores while awaiting assurances that they would not be penalised for hosting the app. Trump signed an executive order extending the deadline for TikTok’s sale by 75 days, allowing the platform to operate in the US without immediate repercussions.
The delay has sparked interest from potential buyers, including former Los Angeles Dodgers owner Frank McCourt, as analysts estimate TikTok’s US business could be worth up to $50 billion. The app, which had over 52 million downloads in 2024, remains one of the most popular in the country.
The law requiring ByteDance to sell TikTok’s US assets was signed last April by then-President Joe Biden, driven by national security concerns over potential Chinese government influence. That move marks an unprecedented step in US policy, granting the government broad authority to ban or force the sale of foreign-owned apps. Trump has stated that he is discussing TikTok’s future with multiple parties and expects to make a final decision by February.
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Thomson Reuters has won a legal battle against Ross Intelligence, after a judge ruled that the law firm’s use of Thomson Reuters’ legal content to train an AI model violated US copyright laws. The case stems from a 2020 lawsuit where Thomson Reuters accused the now-defunct legal research firm of using its Westlaw platform to build a competing AI system without permission.
Judge Stephanos Bibas confirmed that Ross Intelligence’s use of the content did not qualify as “fair use” under US copyright law, which permits limited use of copyrighted material for purposes such as teaching or research. Thomson Reuters expressed satisfaction with the ruling, stating that copying its content for AI training was not a fair use.
This case is part of a broader trend of legal challenges involving AI and copyright issues, with authors, artists, and music labels filing similar lawsuits against AI developers for using their works without compensation. These cases all involve the claim that tech companies have used vast amounts of human-created content to train AI models, raising concerns about intellectual property rights and the ethics of AI development.
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The Dutch government plans to cut bureaucracy and increase investment in artificial intelligence to help the country’s tech startups thrive, Prime Minister Dick Schoof announced. His comments follow a report by TechLeap, which revealed a sharp decline in small firms securing significant funding. Despite a 47% increase in venture capital investment in 2024, the number of Dutch startups receiving more than €100,000 fell dramatically, with most funding coming from foreign investors.
Schoof, speaking at TechLeap’s annual event in The Hague, stressed the urgency of creating a business-friendly environment to attract venture capital. He warned that Europe risks being left behind by the US and China if immediate action is not taken. Eindhoven, home to chip giant ASML, has been a key driver of the Dutch economy, but the slowdown in startup growth raises concerns about long-term innovation.
Two Dutch firms, hotel software developer Mews and AI-powered auditing company DataSnipper, achieved unicorn status last year, but industry leaders remain cautious. With the government now vowing to intervene, the hope is that streamlined regulations and targeted investments will help revive the country’s startup ecosystem.
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US Vice President JD Vance criticised Europe’s heavy-handed AI regulations at a Paris summit, warning they could stifle innovation. He argued the EU’s approach, including the Digital Services Act and GDPR, burdens smaller firms with high compliance costs, which could harm AI’s transformative potential. Vance also dismissed content moderation policies as authoritarian censorship.
The United States and Britain opted not to sign the summit’s declaration advocating inclusive, ethical, and safe AI. Vance emphasised America’s intention to lead AI innovation and resist regulatory frameworks that might hinder its progress. French President Emmanuel Macron and European Commission chief Ursula von der Leyen countered by stressing that regulation is essential to build public trust in AI.
Geopolitical competition dominated discussions, with Vance warning of potential risks in partnering with China. He cautioned against allowing authoritarian regimes to influence critical information infrastructure through subsidised technology exports. Although he didn’t name DeepSeek, a recent Chinese AI development, his remarks highlighted growing concerns about maintaining technological leadership.
The summit exposed significant policy differences, with the US prioritising rapid AI advancement over stringent safety measures. Critics labelled this a missed opportunity to address broader AI risks, including supply chain security and workforce disruptions.
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