TACO Trade War Has Nothing On Nvidia

Nvidia like that overzealous student absolutely reminds analyst not to underestimate their earnings as they beat analyst estimates where it matters. TACO trade war, which stands for Trump Always Chickens Out, seen in his on again off again tariff policies. Elon Musk finaly decides to return to being a multi company CEO and not a government employee.

• Major Headlines 

• Elon Musk Exits Trump Administration After Controversial Government Stint

• Tesla CEO Elon Musk is stepping away from his high-profile role in the Trump administration, bringing an end to what’s been a turbulent and often headline-grabbing tenure. A White House official confirmed on Wednesday that Musk’s departure from his post at the Department of Government Efficiency (DOGE) would begin immediately. The billionaire entrepreneur also acknowledged the move on his platform, X, thanking President Donald Trump as his temporary government role comes to a close.

  Musk’s exit was swift and, according to insiders, came without a direct conversation with Trump—suggesting the decision was made at senior staff levels. While the exact reasons remain unclear, tensions escalated earlier this week when Musk publicly criticized the administration’s latest tax proposal, warning it could undermine DOGE’s cost-cutting goals. That didn’t sit well with some senior officials, including Deputy Chief of Staff Stephen Miller, who reportedly scrambled to reassure Republican lawmakers of the bill’s importance.

  Initially seen as a disruptive force poised to reshape federal operations, Musk's tenure was anything but conventional. From wielding a red chainsaw at CPAC to pushing for deep staffing cuts across federal agencies, he quickly made waves. However, over time, resistance grew—from both within the cabinet and among lawmakers—especially as Musk clashed with high-profile figures like Secretaries Marco Rubio, Sean Duffy, and Scott Bessent. His blunt style and controversial remarks eventually began to overshadow his policy objectives, leading to a cooling of his influence inside the administration.

  As Musk now shifts focus back to his companies, the future of DOGE remains uncertain. While Musk insists the initiative will live on, many departments are expected to reassert control over staffing and budgets. Still, the program did leave a mark: more than 260,000 federal positions were cut during his tenure. Yet that downsizing has also come with challenges, including operational delays, cost overruns, and a brain drain in critical areas. Musk, reflecting on his time in Washington, told The Washington Post the bureaucracy was “much worse than I realized,” and signaled that his next chapter would focus more on business and less on politics. Bloomberg

• U.S. Court Halts Trump’s Broad Tariffs, Citing Presidential Overreach

• In a significant legal blow to former President Donald Trump’s trade agenda, the U.S. Court of International Trade has struck down most of the broad tariffs his administration imposed on imports. The court ruled that Trump exceeded his authority by invoking emergency powers under the International Emergency Economic Powers Act (IEEPA) to enforce blanket duties, emphasizing that the U.S. Constitution grants Congress—not the president—primary authority over trade. As part of the decision, the court issued a permanent injunction and ordered the administration to revise the contested tariff orders within 10 days.

  The ruling sent financial markets into rally mode, with the U.S. dollar strengthening and stock indices climbing across both American and Asian markets. While the Trump team quickly filed an appeal, the court’s decision casts serious doubt on one of the former president’s hallmark strategies—using tariffs as leverage in global trade negotiations. Though the ruling doesn’t touch industry-specific duties like those on steel and autos, it sharply curtails the president’s ability to impose sweeping tariffs unilaterally. Some analysts have even coined the term “TACO trade war”—short for Trump Always Chickens Out—to describe the inconsistent and often reversed tariff policies that have frustrated businesses and allies alike.

  The decision is a win for small businesses and state governments that filed lawsuits arguing the tariffs drove up costs and disrupted supply chains. “If the orders are unlawful for one, they’re unlawful for all,” the judges wrote. Oregon Attorney General Dan Rayfield, leading one of the state lawsuits, called the tariffs “reckless” and applauded the ruling as a reaffirmation of legal limits on presidential power.

  What happens next is still up in the air. Multiple related cases are working their way through the courts, and appeals could reach as high as the U.S. Supreme Court. In the meantime, the decision forces policymakers to rethink how future administrations can—and should—approach global trade. It also injects fresh uncertainty into ongoing negotiations with major trading partners at a time when supply chains are still healing from years of disruption. Financial Times

• Nvidia Stock Rises Despite China Export Curbs Impact

• Nvidia’s latest earnings beat expectations, sending its shares up 5% in after-hours trading—even as the company warned that new U.S. restrictions on AI chip exports to China would cost it up to $8 billion in the current quarter. Investors were reassured that the hit wasn’t as severe as anticipated, and the company highlighted strong early demand for its next-gen Blackwell chips from major customers like Microsoft.

  CEO Jensen Huang didn’t hold back during the earnings call, acknowledging the growing strain U.S. policy has placed on Nvidia’s access to the Chinese market—home to a massive base of AI developers. He praised former President Donald Trump for rolling back a proposed regulation that would have tightened global control over U.S. AI chips. At the same time, Nvidia is exploring growth in new markets, including major data center projects in the UAE, Saudi Arabia, and Taiwan.

  While China-related revenue dropped, Nvidia still reported strong results, thanks in part to Chinese firms stocking up on its H20 chips ahead of the restrictions. The company brought in $4.6 billion from H20 in Q1 alone, even though it lost $2.5 billion in potential sales. The forecasted $8 billion loss in Q2 was tempered by better-than-expected reuse of components, which softened the blow from an earlier projected $15 billion impact.

  Nvidia now expects second-quarter revenue of around $45 billion—slightly below Wall Street’s average forecast of $45.9 billion. Analysts see trade tensions, potential tariffs, and shifting geopolitics as long-term risks, but for now, the company remains a powerhouse in the AI chip market. As Emarketer’s Jacob Bourne put it, "This doesn’t mark the end of Nvidia’s dominance, but keeping that lead will mean skillfully navigating an increasingly complex global landscape." Financial Times

• U.S. to Begin Revoking Visas for Chinese Students Amid National Security Concerns

• The U.S. government has announced a sharp new measure that could affect thousands of Chinese students: revoking visas, particularly for those with ties to the Chinese Communist Party or studying in sensitive academic fields. Secretary of State Marco Rubio said Wednesday that the decision is part of a broader push to enhance national security and tighten oversight of foreign nationals studying in the U.S. Future visa applications from China and Hong Kong will also face stricter scrutiny, signaling a more aggressive posture from the State Department.

  The move could have significant ripple effects—not only for students, but also for American universities and the tech sector. Chinese students have long been a vital part of the U.S. academic system, and their presence has helped fuel innovation and fill research pipelines. In 2023 alone, international students contributed over $50 billion to the U.S. economy, with Chinese and Indian nationals accounting for more than half of that total. If visa revocations ramp up, institutions that rely on international tuition dollars could face a sudden funding gap.

  The policy shift comes as tensions between the U.S. and China continue to deepen. While the Biden and Trump administrations have clashed on many fronts, their stance on China has remained consistently tough. Last week, the State Department cited Harvard University’s connections to China as a concern in limiting its ability to enroll foreign students—a move that has since been paused by a judge. Rubio’s latest statement didn’t specify how many students might be affected, but even limited enforcement could send a strong message and chill applications from prospective Chinese students.

  Over the last few years, the number of Chinese students in the U.S. has already been trending downward—from a peak of 370,000 in 2019 to about 277,000 in 2024—amid growing geopolitical friction, COVID-era disruptions, and increased scrutiny of academic ties. Now, with U.S.-China relations entering what some analysts describe as a "new Cold War," Washington is taking a harder look at influence and intellectual property risks in higher education. While the Chinese government has promised to defend its students' rights abroad, the future of academic exchange between the two superpowers is looking increasingly uncertain. Financial Times

Minor Headlines

• Chevron to Lay Off Nearly 800 Workers in Texas Amid Restructuring. Financial Times

• Federal Judge Blocks Trump’s Attempt to Terminate NYC Congestion Pricing Plan. CNN

• U.S. Says Newark Flight Delays Easing Thanks to Schedule Reductions. Bloomberg

• Rachel Reeves to Mandate Pension Allocations as Part of Major Megafunds Initiative. CityAM

• Texas Law Now Requires Apple, Google to Verify Users’ Ages on App Stores. CNN

• Trump Administration Orders Select U.S. Firms to Halt Sales to China. Reuters

• Hailey Bieber’s Rhode Beauty Brand Acquired by e.l.f. in $1 Billion Deal. Financial Times

• NTT Docomo to Acquire Net Bank for $2.9 Billion in Intensifying Market Battle. Bloomberg

Gen Z Word of the Day

Cap

An older but still relevant term, cap means to lie. If you say "no cap," it means you are being authentic or truthful.