To Tariff Or Not To Tariff [Read It and Eat 10:04:2025]

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Major Headlines

• "Trump’s Tariffs: On Again, Off Again—Markets React to Shifting Trade Moves"

• President Donald Trump intensified his trade war with China while unexpectedly announcing a 90-day pause on tariffs for many other countries. This surprise move sent gold prices climbing toward record highs, even as Asian stock markets rallied in response to the White House's abrupt shift in policy. While a 10% baseline tariff remained in place for most nations, China was singled out for a sharp escalation—Trump raised the tariff rate on Chinese imports to 125% in direct response to Beijing’s earlier counter-tariff of 84% on U.S. goods. U.S. Treasury Secretary Scott Bessent later explained that the temporary rollback was part of a broader strategy to encourage other nations to return to trade negotiations. However, this announcement came just days after a market-altering moment on social media. On Monday, an anonymous X (formerly Twitter) account named Walter Bloomberg, known for rapid-fire financial headlines, posted that Trump was considering a 90-day pause on all tariffs except those targeting China.

  The tweet quickly spread, even gaining traction with major outlets like CNBC. Markets reacted instantly—the S&P 500 surged over 7% before falling back. Just an hour later, the White House denied the report and labeled it “fake news.” The tweet was subsequently deleted. This episode underscored the current fragility of the markets and the potential risks of relying on unverified information from social media sources. At this juncture, can Walter Bloomberg's tweet really be referred to as a rumor?

  While Trump’s strategy may still result in renegotiated trade deals, many believe the damage to market confidence and the broader U.S. economy is already done. Restoring stability and rebuilding trust—both domestically and internationally—will take time, regardless of how the tariff battles unfold  Bloomberg

  
  

• Apple’s Slide Puts Microsoft Back on Top as Most Valuable Company

• After a sharp four-day decline, Apple has ceded its spot as the world’s most valuable public company to Microsoft. As of Tuesday’s market close, Microsoft’s valuation stands at $2.64 trillion, edging out Apple’s $2.59 trillion market cap. Apple has taken the biggest hit among major tech players, largely due to its deep ties to China—an issue magnified by President Trump’s expansive new tariff policy. The broader market has also felt the impact, with the Nasdaq falling 13% over the past four trading days amid growing concerns that higher prices could push the U.S. toward a recession. UBS analysts even projected that the iPhone 16 Pro Max could cost up to $350 more if tariffs remain in place. Before the recent downturn, Apple, Microsoft, and Nvidia had each reached valuations north of $3 trillion. While Microsoft recently issued softer revenue guidance in January, some analysts believe it may weather the tariff storm better than others. In a note last week, Jefferies analysts lowered price targets across much of the software sector but highlighted Microsoft as one of the companies more insulated from trade-related volatility. CNBC

• Tesco Tops Profit Forecasts but Warns of Tougher Year Ahead Amid Fierce Competition

• Tesco has outperformed expectations with its latest profit figures, showing strong momentum in the UK grocery sector. However, the supermarket giant also cautioned that growing competition could weigh on earnings in the year ahead. Despite the upbeat results, Tesco’s share price dipped more than 4% at the FTSE open. In its latest update, Tesco reported a 10.9% rise in group adjusted operating profit at constant rates, reaching £3.13 billion—surpassing analyst forecasts of £3.07 billion for the year ending in February. Much of this growth has been credited to CEO Ken Murphy’s leadership, with initiatives like the Clubcard loyalty scheme and Aldi price match helping to drive sales and customer engagement.

  While industry analysts had predicted revenue of around £70 billion, Tesco came just shy of that, reporting £69.9 billion—still a 2.5% increase from the previous year. Post-tax profit climbed to £1.6 billion, up a notable 36.7% year on year. The retailer also saw its market share grow by 0.67 percentage points to 28.3%, its highest level since 2016. Looking ahead, Tesco anticipates a dip in profit next year, forecasting group adjusted operating profit between £2.7 billion and £3 billion. The company noted that competitive pressures in the UK grocery market have intensified in recent months, and it expects those challenges to continue impacting performance. CityAm

  
  

• Americans Rush to Buy iPhones Amid Fears of Tariff Price Hikes

• Apple employees across the U.S. have reported a surge in customer inquiries about potential price increases due to President Trump's new tariffs on Chinese goods. According to Bloomberg, customers are rushing to buy new iPhones, worried that the company might raise prices to offset the additional costs brought on by the tariffs.

  While Apple did not comment on the situation, its retail stores have seen higher sales over recent weekends compared to previous years. A report from TechInsights suggests that the cost of manufacturing an iPhone could rise from $580 to $850 due to the new tariffs on Chinese imports. Although Apple is likely to avoid raising prices on its flagship product immediately, the iPhone, which accounts for 50% of its total revenue, could face higher prices if the company doesn't find a way to cover the increased costs.

  Apple's best option might be to seek an exemption from the tariffs, similar to what it achieved during the first Trump administration. However, with the White House recently increasing duties on Chinese goods to 104%, the chances of that happening seem slim. In response, Apple has announced plans to temporarily increase iPhone production in India, where tariffs are much lower than in China. Although Apple isn't likely to completely overhaul its supply chain, the company has been diversifying its manufacturing in countries like Vietnam, Ireland, Thailand, and Malaysia over the past few years to reduce its reliance on China.CityAm

Minor Headlines 

• Singapore Intensifies Push to Become Asia’s Leading Restructuring Hub. Bloomberg

• Google is Paying AI Staff to Sit Idle as They Join Competitors. TechCrunch

• Barclays Discontinues DEI Initiatives in the U.S. BBC

• Wall Street Prepares for Declining Earnings Amid Ongoing Trade War Bloomberg

• Rapper Sean Kingston and His Mother Convicted of Fraud. CNBC

• Mecca Bingo Parent Rank Group Sees 11% Rise as Digital Growth Continues. CityAm

• UK Tech Start-up Aims to ‘Replicate Netflix’s Disruption of Blockbuster’ with Sage. CityAm

• Walmart’s Price Gaps Signal Upcoming Trade Disruptions for Consumers. The Economic Times

Gen Z Word of the Day

Ghost

To abruptly stop communicating with someone, often in an online interaction via text or direct messages.

• Example: He ghosted me after our first date, so mean!