Support
Markets steady as AI selloff eases; tariffs in focus
President Trump wants to impose across-the-board tariffs that are "much bigger" than 2.5% to reshape US supply chains and protect American workers and businesses.
AI competition concerns wiped billions from Nvidia’s market cap.
Treasury proposes a 2.5% universal tariff, potentially reaching to 20%.
Trump pushes for lower corporate tax rates and higher import tariffs.
The sharp equity selloff triggered by competition fears in artificial intelligence appears to have eased for now. The Nasdaq Composite, which dropped more than 3% on Monday, saw selling pressures wane as the session progressed. Meanwhile, the Dow Jones Industrial Average showed resilience, rising 0.65% by the close.
This relative stabilization has reversed safe-haven flows, with the Swiss franc and Japanese yen giving up earlier gains and showing signs of renewed weakness.
Dollar finds support amid tariff comments
The U.S. dollar gained traction following reports of potential tariff measures. The Financial Times reported that Treasury Secretary Scott Bessant is proposing a universal 2.5% tariff on imports that would increase incrementally each month, potentially reaching as high as 20%.
President Donald Trump hinted at even steeper rates, emphasizing that higher import tariffs would be offset by tax relief for American businesses and workers. Speaking to reporters on Monday, Trump also renewed his call for reducing the corporate tax rate to 15%—down from the current 21%—for companies producing goods domestically.
“I have it in my mind what it’s going to be, but I won’t set it yet,” Trump said. “It’ll be enough to protect our country.” The proposed measures are aimed at boosting domestic manufacturing and job creation by increasing the cost of imports while incentivizing local production.
Semiconductor tariffs and AI concerns
The tariff discussion comes just hours after investor anxiety over Chinese AI startup DeepSeek erased $590 billions in market capitalization from Nvidia Corp. Trump has suggested the introduction of semiconductor tariffs to counter reliance on overseas chipmakers and to bolster U.S. production of advanced technologies.
The proposed tariffs signal a shift from the subsidy programs championed by former President Joe Biden, aligning with Trump’s broader strategy of protecting domestic industries.
