U.S. President imposes 100% tariffs on Foreign made Films

Posted on May 5, 2025June 4, 2025 by Olumide Adesina

President Donald Trump announced that he had directed his administration to impose a 100 percent tariff on all films made in the United States, asserting that the film industry in the United States was “dying.”.

Trump asserted that foreign countries were making a concerted effort to entice studios and filmmakers away from the United States and that it posed a threat to national security in addition to serving as a propaganda and messaging tool.

In a post on Truth, Trump declared, “I am authorizing the Department of Commerce and the United States Trade Representative to institute a 100 percent tariff on any movies coming into our country that are produced in foreign lands.”.

Given that movies are distributed through theaters, cable television, streaming services, and, to a lesser extent, the sale of physical media, it’s unclear how Trump’s tariff would be applied. Over the past ten years, the US film industry has seen a significant paradigm shift, particularly with the emergence of streaming services, and as theater attendance has struggled to recover from the COVID-19 pandemic.

The US box office’s gross domestic yearly revenue in 2024 was approximately $8.57 billion, a 3.8% decrease from the previous year.

A significant turning point for movie theaters was the COVID-19 pandemic in 2020, and the print was significantly below previous highs. American studios have produced four of the highest-grossing films ever, with director James Cameron’s Avatar: The Way of Water in 2022 being the most recent production to reach this milestone.
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TikTok fined €530 million for transferring EU user data to China

Posted on May 2, 2025June 4, 2025 by Olumide Adesina

Ireland’s privacy watchdog fined TikTok 530 million euros for sending user data to China. The Irish Data Protection Commission (DPC), which oversees TikTok’s privacy in the EU, declared that the company had violated the GDPR data protection law by sending user data from Europeans to China.

The regulator stated that if TikTok does not comply with its order to bring its data processing into compliance within six months, it will suspend the company’s transfers to China.

In a statement released Friday, Graham Doyle, deputy commissioner at the DPC, said, “TikTok’s data transfers to China violated the GDPR because TikTok failed to verify, guarantee, and demonstrate that the personal data of EEA users, remotely accessed by staff in China, was afforded a level of protection essentially equivalent to that guaranteed within the EU.”

“TikTok failed to conduct the required assessments, which resulted in TikTok failing to address the possibility of Chinese authorities gaining access to EEA personal data under Chinese anti-terrorism, counter-espionage, and other laws that TikTok identified as materially deviating from EU standards,” he continued.

The DPC also discovered that TikTok had misled its investigation when it stated that it had not kept European users’ data on Chinese servers. Contrary to its earlier claims, TikTok told the regulator this month that it had found a problem in February where a small amount of European user data was kept on servers located in China. In consultation with its fellow EU data protection authorities, the DPC evaluated whether additional regulatory action is necessary, stating that it takes the matter “very seriously.”.

TikTok is appealing against the ruling because it disagrees with the Irish regulator.

TikTok’s head of public policy and government relations for Europe, Christine Grahn, claimed in a blog post on Friday that the decision did not consider Project Clover, a 12-billion-euro data security project designed to safeguard European users’ data.

According to Grahn, “it does not reflect the safeguards currently in place and instead focuses on a select period from years ago, before Clover’s 2023 implementation.”. She continued, “The DPC itself noted in its report what TikTok has repeatedly stated: it has never been asked for European user data by the Chinese authorities and has never given them European user data.”.

BOJ expected to hold interest rates, frightened over U.S Tariffs

Posted on April 28, 2025 by Olumide Adesina

The Bank of Japan is anticipated to keep interest rates steady on Thursday and caution against increasing dangers to the delicate economy that might keep policy in a holding pattern, as U.S. tariffs continue to impact confidence.

The discussion may be influenced by what BOJ Governor Kazuo Ueda heard in Washington last week, the International Monetary Fund cut its global growth forecasts, and policymakers worry about further damage to their economies from U.S. trade policy.

Ueda said the BOJ will continue to raise interest rates, provided the economy maintains a steady recovery and keeps inflation on track to reach its 2% target.

While the BOJ is set to downgrade its growth forecasts, it is expected to signal that risks from higher U.S. tariffs won’t undermine wage and cost increases seen as crucial for future rate hikes.

However, the path toward policy normalization may take longer than anticipated as trade pressures push major exporters, which had driven wage increases until this year, to consider slowing or halting raises for another year.

“The balance of risks is on the downside for growth and inflation,” as the tariff-induced uncertainty may discourage firms from maintaining substantial wage increases in next year’s wage talks, a senior IMF official said, anticipating the BOJ to push back the timing of future rate hikes.

The BOJ is widely expected to keep short-term interest rates at 0.5% at the two-day meeting concluding on Thursday.

Trump’s on-off tariffs have sent shockwaves through financial markets and prompted policymakers, including those from Japan, to scramble for concessions from Washington.
Particularly damaging for Japan could be a 25% tariff on cars, a backbone of its export-heavy economy.

“Pre-tariffs, perhaps the sun was beginning to shine a little more brightly in Tokyo,” said Nathan Sheets, Global Chief Economist at Citi Research, referring to rising real wages that fueled consumption.

“But when the corresponding tariffs were imposed, and the auto duties, which are significant as well, we said no rate hikes this year,” he said on Citi’s projection of the next BOJ rate rise.

Nvidia underwater after China’s Huawei Chip Update

Posted on April 28, 2025 by Olumide Adesina

Nvidia fell in after-hours trading Sunday night, after a report surfaced claiming China’s Huawei was testing an advanced artificial intelligence processor meant to compete with some of Nvidia’s products.

However, Nvidia recently indicated that it will encounter new restrictions regarding the sale of its H100 chips in China, raising concerns of a possible slowdown in sales within China. The possibility of a domestically produced competing option could further intensify the sales pressure on Nvidia in China, which still accounts for a significant portion of Nvidia’s sales.

Nvidia’s valuation soared over the last two years as the company reaped profits from AI chip sales.

However, this trajectory reversed in 2025 when investors began questioning the strength of demand for AI chips as AI models became less reliant on intensive computing.

The massive tariffs that the two giants have slapped on one another in recent weeks, to 145 percent from 125 percent, have been the main focus of the ongoing trade war between the United States and China.

Donald Trump has, however, recently taken a more technical measure to thwart Beijing’s aspirations: tight limitations on Nvidia’s chip exports to China.

The company was established in 1993 and focuses on producing graphics processing units (GPUs). These chips can instantly complete incredibly complex calculations created to operate video games.

Apple is moving iPhones production base from China to India

Posted on April 25, 2025 by Olumide Adesina

Apple intends to relocate the assembly of all iPhones sold in the U.S. to India as early as next year as part of its plans to move away from strained relations with China, as reported by the Financial Times on Friday.

APPL is seeking to complete the push faster than investors project; sources claim that Apple hopes to shift over 60 million iPhones sold in the U.S. to be Indian-sourced by the end of 2026.
If successful, these plans will nearly double India’s iPhone output within a year. Apple spent twenty years developing production lines in China.

Apple relies heavily on China as a manufacturing base; the company’s products are fabricated by third parties like Foxconn.

However, this reliance makes the company vulnerable to steep trade tariffs imposed by U.S. President Trump on the world’s second-largest economy.
Reports surfaced in April of Apple hastily shipping iPhones out of India, coinciding with early April, when Trump began his renewed trade war with China.

Although Trump lifted the ban on electronic imports from China, he stated that this was not a permanent decision and that tariffs would be imposed on electronic imports. China responded to Trump’s 145% tariffs with a 125% tax. Apple’s market capitalization was depleted by up to $700 billion amid worries about its vulnerability.

Apple increased its production capacity in India by working with Foxconn and Tata Electronics, two contract manufacturers.
Beijing is paying more attention to the corporation as relations with the United States worsen. However, most of Apple’s flagship iPhones are still made in China.

Traders make $11.5 billion betting against Tesla

Posted on April 22, 2025 by Olumide Adesina

Investors who hold Tesla stocks have faced significant challenges over the past year, while short sellers have profited handsomely after wagering against the firm’s stock.

Tesla’s short sellers made $11.5 billion this year. The stock has posted a 44% decline this year. The share price drop is as of Monday’s market close.

The electric vehicle company is also anticipating reporting a mild dip in yoy revenue, having already communicated a decrease in vehicle deliveries to 13 in the dash for the quarter.

The stock saw a dip around 4% on Tuesday in conjunction with the rest of the market, then bounced back when entering trade the day before the earnings report on July 30. With Tesla facing severe US and European backlash and protests, a Musk-backed AfD party advocating for Germany, it does not seem the company is getting much support.

Tesla shares plummeted 36% in the first quarter, their worst performance for any period since 2022, and have continued to drop in April, largely on concerns that President Trump’s sweeping tariffs on top trade partners will increase the cost of parts and materials crucial for EV production, including manufacturing equipment, automotive glass, printed circuit boards and battery cells.

Additionally, the company is lagging in the robotaxi sector, which is now dominated in the U.S. by Alphabet’s Waymo, and is having difficulty keeping up with its cheaper Chinese competitors. In June, Tesla plans to introduce its first autonomous ride-hailing service in Austin, Texas.

Among tech megacaps, Tesla has had the largest stock loss this year. Nvidia, down almost 28% as of Monday’s closing, is next in line. According to S3, the chipmaker has produced returns of $9.4 billion, making it the second-best profit generator for short sellers.

Apple stock caught in U.S-China Cross Fire, Sinks below $191

Posted on April 21, 2025April 21, 2025 by Olumide Adesina

Apple stock fell nearly 4% on Monday, sending the iPhone maker’s market value sinking below $191 amid tariff pressures on the company after shares had enjoyed what some analysts called a “relief rally” late last week.

Apple’s reliance on Chinese manufacturing and sales makes it vulnerable to policy shifts. Beijing’s reaction to new U. S. chip restrictions has reignited fears of retaliation, dragging down shares tied to China’s tech economy

The concern about Apple is that it will become harder to avoid the crossfire between the U. S. and China as tariffs and restrictions

First, President Trump has spent the last week openly criticizing and calling for the immediate firing of Federal Reserve Chair Jerome Powell. The Fed is the central banking system of the United States, and it has long upheld independence from politics, which most economists feel is essential for the reserve to function effectively.

However, experts are concerned that if Trump follows through on firing Powell, the move could end the independence of the Fed and send stocks into a tailspin.

Second, on Monday night, China issued an official warning against any countries striking deals with the U. S. at its expense. The warning came in response to a Bloomberg report that the Trump administration planned to pressure other nations to cut down on trade with China and negotiate their tariff exemptions with the U.S.

In response, China’s Commerce Ministry said in a statement that it would “take countermeasures resolutely and reciprocally.” Currently, the Trump administration has levied a whopping 145% tariff on Chinese imports, leading China to enforce 125% duties on U. S. goods.

For most tech companies, strained trade relations with China have major ripple effects across operations. Most Apple products, for example, are manufactured in China, while many products sold on Amazon are made there, and Nvidia chips are manufactured in Taiwan. Likewise, Tesla relies heavily on parts made in China.

U.S. Dollar on 5th day Losing Streak

Posted on April 14, 2025 by Olumide Adesina

The US Dollar Index has dropped to about 99.37, falling for 5 days. The greenback is bearish amid an intensifying trade war between the United States and China.

Donald Trump declared last week that all of its trading partners, except China, would not be subject to reciprocal tariffs for 90 days. The situation deteriorated after Trump increased reciprocal levies on China to 125 percent for imposing substantial counter-tariffs on the US.

President Trump’s trade offensive has caused a crisis of confidence in dollar-denominated assets that is so serious that it jeopardizes the fundamental underpinnings of American financial hegemony. The intricacies and insights of this unraveling reveal how tariff brinksmanship has evolved into a full-fledged currency crisis with consequences that extend well beyond trade flows.

As currency markets processed the ramifications of Trump’s so-called Liberation Day tariffs a broad 10 percent baseline levy on all imports interspersed with punitive rates exceeding 100 percent for targeted nations the dollar’s decline gathered alarming momentum in April.

Traditional models can’t predict the violent market response, as investors staged an unprecedented coordinated flight from US stocks, Treasuries, and the currency itself rather than transferring capital to conventional dollar safe havens.

Countries were greatly relieved by the 90-day reciprocal tariff pause, which caused global stocks, including US stocks, to rise sharply.

The US dollar is still under pressure as investors believe that Trump’s tit-for-tat tariff war with China and his yes-or-no stance on import taxes will reduce the currency’s structural appeal.

Investor dump U.S dollar amid High Uncertainty

Posted on April 11, 2025 by Olumide Adesina

The ongoing trade war has raised concerns about the US dollar’s ability to serve as a safe haven, leading to its continued decline against other major currencies on Friday. China responded to the most recent US tariffs of 145 percent by imposing 125 percent tariffs on American goods.

The US Dollar Index (DXY), which had already reached a new three-year low, continued its downward trend during Friday’s session, closing at approximately 99.7.

Investor confidence is generally waning amid a bleak outlook for the US economy. Investor anxiety over an imminent recession is reflected in the greenback. The dollar and Treasury remain vulnerable to future collapses and function as high-beta assets about risk sentiment.

Repairing the harm will necessitate a more extensive relaxation of Trump’s protectionist policies, even if the dollar recovers on good trade news.

The market reacted negatively when the Producer Price Index reported lower-than-expected results for April, and the University of Michigan sentiment index showed a decline, raising fears of deflation.

Labor market data presented a mixed picture, with unemployment claims slightly increasing to 223,000, while continuing claims decreased to 1.85 million. China’s confirmation of retaliatory tariffs on US imports, matching Washington’s hike of 125 percent, intensified concerns about a potential global recession.

Despite these economic worries, the dollar weakened over the past week. On April 1, just before Liberation Day, the 10-year US Treasury bond yield was 4.17 percent, but on Friday, it rose to 4.46 percent. Typically, one would not expect the dollar to decline as Treasury yields increase.

Hedge Funds set to dump more U.S. Tech Stocks

Posted on April 6, 2025 by Olumide Adesina

Over $40 billion worth of stocks were rapidly sold off by global hedge funds and leveraged exchange-traded funds (ETFs), which became increasingly pessimistic after President Donald Trump’s startling announcement of higher-than-expected global tariffs on Friday.

The stock market value of S&P 500 companies has fallen by more than $4 trillion since Trump raised tariff barriers to their highest level in over a century late Wednesday

JPMorgan noted in a report that to tame high-risk exposure, volatility-targeting portfolios were set to sell between $25 billion and $30 billion worth of stocks in the coming days.

U.S. Tech stocks, leveraged ETFs had an additional $23 billion to sell to rebalance before today’s close, according to JPMorgan.

The bank also reported that macro systematic strategies sold stocks on Thursday at unexpectedly high levels and would need to sell more if another meltdown occurred on Friday.

In a separate note from Goldman Sachs, global equity long/short hedge funds experienced net selling in nearly 15 years on Thursday and became the most pessimistic since 2011.

Clients of hedge fund trading and leveraged providers Goldman Sachs and JPMorgan closely monitor market trends.

JPMorgan added that it operates under certain assumptions. Besides not immediately responding to a request for comment, Goldman did not reveal the net selling dollar amount mentioned in its note.