US

Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

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US exempts key electronics from China import taxes

Smartphones, computers, and key tech components have been granted exemption from the latest round of US tariffs, providing relief to American technology firms heavily reliant on Chinese manufacturing.

The decision, which includes products such as semiconductors, solar cells, and memory cards, marks the first major rollback in President Donald Trump’s trade war with China.

The exemptions, retroactively effective from 5 April, come amid concerns from US tech giants that consumer prices would soar.

Analysts say this move could be a turning point, especially for companies like Apple and Nvidia, which source most of their hardware from China. Industry reaction has been overwhelmingly positive, with suggestions that the policy shift could reshape global tech supply chains.

Despite easing tariffs on electronics, Trump has maintained a strict stance on Chinese trade, citing national security and economic independence.

The White House claims the reprieve gives firms time to shift manufacturing to the US. However, electronic goods will still face a separate 20% tariff due to China’s ties to fentanyl-related trade. Meanwhile, Trump insists high tariffs are essential leverage to renegotiate fairer global trade terms.

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AI giant Nvidia rebounds but challenges remain

Shares in Nvidia soared by nearly 20 per cent following a 90-day suspension of new US tariffs, lifting Wall Street to one of its strongest single-day performances in decades. The tech giant, whose chips underpin much of the AI boom from tools like ChatGPT to drone technologies, added $440bn to its market value in just one session, underlining its pivotal role in the global AI race.

Despite the rally, serious concerns remain. While some tariffs were temporarily halted, President Donald Trump raised levies on Chinese imports to as high as 125 per cent. For Nvidia, whose supply chain relies heavily on advanced manufacturing in Asia, particularly Taiwan and South Korea, the move threatens to disrupt both costs and production timelines. Analysts caution that such trade friction could deter investment in AI infrastructure, which is still in early stages of commercial return.

Even with strong revenues and continued dominance in AI hardware, Nvidia faces growing headwinds. The firm’s recent share slump reflected broader anxiety over whether AI spending is peaking, alongside the rise of cheaper, open-source alternatives. Added pressure from high energy demands, regulatory risks, and tighter capital markets could further complicate growth. Industry watchers warn that tariffs may undermine the very conditions AI needs to flourish: stable supply chains, affordable power, and investor confidence.

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Anker raises prices amid rising US tariffs

Chinese tech company Anker, one of Amazon’s largest sellers, has raised prices on a fifth of its products on the platform since last Thursday. The price hikes, averaging 18%, are a direct result of the recent increase in US tariffs on Chinese goods.

The majority of the price rises occurred after 7 April, when President Donald Trump imposed an additional 50% import duty on Chinese imports.

It follows a broader trend where US import tariffs on Chinese goods have now reached 145%, while Beijing retaliated by raising tariffs on US products to 125%.

In response, China’s largest cross-border e-commerce association warned that many Chinese businesses selling on Amazon are considering price hikes or may leave the US market altogether.

Anker, a major player in the e-commerce space since its founding in 2011, has leveraged its bargaining power to implement these price increases.

With 5,000 employees and annual revenues of 22.17 billion yuan ($3 billion), Anker is able to absorb some of the tariff pressure while many of its competitors face similar challenges.

The company has also hinted at expanding into non-US markets, including Europe and Southeast Asia, as it seeks to navigate the increasingly challenging trade environment.

Anker and Amazon did not immediately respond to requests for comment.

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Trump moves to prop up struggling coal industry

President Trump is set to sign an executive order designating coal as a critical mineral instead of allowing its continued decline in the energy sector.

The order will force some coal-fired power plants slated for closure to remain operational, with the administration citing rising electricity demand from data centres instead of acknowledging coal’s dwindling competitiveness.

Currently, coal generates just 15% of US electricity instead of its 51% share in 2001, having been overtaken by cheaper natural gas and renewables.

Environmental experts warn coal remains the dirtiest energy source instead of cleaner alternatives, releasing harmful pollutants linked to health issues like heart disease and mercury poisoning. While the order may temporarily slow plant closures, analysts note it won’t reverse coal’s decline.

Solar and wind power now undercut operating costs at nearly all US coal plants instead of being more expensive, as was once the case.

The move could have more impact in steelmaking, where coal is still used instead of newer green steel techniques in most production. However, for power generation, renewables can be deployed faster than new coal plants instead of struggling to meet demand.

The order appears to prioritise political symbolism instead of addressing energy market realities, as even existing coal plants struggle to compete with increasingly affordable clean energy alternatives.

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GenAI comes to Spotify ads in US and Canada

Spotify has announced a suite of new advertising tools and features, including generative AI capabilities, at its recent Spotify Advance event in New York.

Designed to simplify ad creation and targeting, the initiative, branded as Spotify GenAI Ads, aims to help advertisers generate scripts and voiceovers at no extra cost.

Advertisers can also collaborate with Spotify’s in-house creative agencies to develop campaigns, while upgraded tools on the Spotify Ad Exchange (SAX) offer access to logged-in users through real-time auctions.

Integration with platforms such as Google Display & Video 360, The Trade Desk, Magnite, and Yahoo DSP further enhances reach and targeting options.

A new Spotify Ads Manager tool is also being rolled out in the US and Canada, providing advanced audience segmentation and performance tracking for tailored campaigns. These innovations reflect Spotify’s growing focus on personalisation and automation in digital advertising.

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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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