CNBC Daily Open: Not even fire extinguishers can escape the Trump administration's tariffs
After the Trump administration hinted it could be open to Nvidia exporting more powerful chips to China after their revenue-sharing agreement, the semiconductor darling was reported to be developing a new chip for Beijing.
And Intel's bounty from the CHIPS Act, formalized by the previous administration under Joe Biden, might come with a price tag of giving the current U.S. government a stake in the company.
Meanwhile, the effects of tariffs continue to creep into everyday life.
The costs incurred by fires in the U.S. — think of the tragic Los Angeles wildfires in January or the one near the Grand Canyon just last month — are already growing, not just in terms of the physical damage but also the price of insurance premiums.
And now that Trump has added fire extinguishers to a list of steel products that will face a 50% import tariff, even the price of relatively more benign and contained fires, such as those you start to burn photographs of your ex-partner, will be more expensive to put out. That's a truly protest-worthy tariff.
Trump expands reach of steel and aluminum tariffs. The duties, which impose a 50% charge on imports, will include more than 400 additional product categories, such as fire extinguishers, machinery and construction materials.
Nvidia says it is evaluating 'a variety of products.' The chipmaker is working on a new artificial intelligence chip for China that will be based on its Blackwell architecture, making it more powerful than the currently available H20, reported Reuters.
Intel equity in return for U.S. government funding. U.S. Commerce Secretary Howard Lutnick said Tuesday that the White House will provide the chipmaker with cash, which was promised under the CHIPS Act, in exchange for "an equity stake for our money."
Technology stocks weigh down U.S. markets. The Nasdaq Composite fell 1.46% on Tuesday as shares of Palantir sank more than 9%. The Stoxx Europe 600 rose 0.69% even though European defense stocks tumbled. The U.K.'s FTSE 100 hit a record close.
[PRO] UBS raises its forecast for gold — again. Despite the rally for gold stalling since the middle of the year, the Swiss banking giant hiked its 2025 and 2026 target for gold prices.
Trump promised Ukraine 'security guarantees': Here's what they could look like
The most significant development from Monday's talks between U.S. President Donald Trump, Ukraine's President Volodymyr Zelenskyy and European leaders was Trump's statement that security guarantees for Ukraine would be "provided" by European countries in "coordination with the U.S."
French President Emmanuel Macron hinted Tuesday that the "first security guarantee we are working on — and it is the most important — is a strong Ukrainian army, composed of several hundred thousand men, well equipped, with defense systems and higher standards."
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