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Tech sector breathes easier with US-China trade pact |
The tech industry is breathing a sigh of relief after the U.S. and China agreed to substantially lower tariffs, underscoring the prospect of de-escalation in a trade war that has been particularly challenging for the sector. |
© AP Photo/Manuel Balce Ceneta |
The two countries appear to be walking back from a costly tit-for-tat exchange on tariffs, announcing a 90-day reduction in import taxes as they continue to negotiate a longer-lasting deal. The tech sector saw its stocks tumble earlier this year as massive tariffs threatened to strain supply chains and raise consumer prices. While it received some relief last month when President Trump exempted electronics from the import taxes, the industry's outlook is even more optimistic now as tensions ease. "It's a relief valve for U.S. Big Tech," Wedbush Securities analyst Dan Ives told The Hill. "It takes the nightmare supply chain situation off the table." The U.S. and China announced Monday that they had agreed to reduce tariff rates for 90 days amid negotiations. The U.S. will lower tariffs on Chinese goods from 145 percent to 30 percent, while China will reduce import taxes on American goods from 125 percent to 10 percent. The trade truce marks a sharp departure from months of escalation between Washington and Beijing. "It's de-escalation from what could have been an incredibly damaging set of outcomes for both China and the United States if those tariffs stayed in place at those very high rates," said Ed Brzytwa, vice president of international trade at the Consumer Technology Association. "So, in my view, cooler heads are prevailing," he added. Read more in a full report at TheHill.com. |
Welcome to The Hill's Technology newsletter, we're Miranda Nazzaro and Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley. |
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How policy will be impacting the tech sector now and in the future: |
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Pope Leo XIV will maintain “an active social media presence” on the official papal accounts on the social platform X and Instagram, the Dicastery for Communication announced Tuesday. The pope posted for the first time on Instagram on Tuesday, sharing photos from his first few days as pope, including of his first public address after his May 8 election. "Peace be with you all! This is the first greeting spoken by … |
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Microsoft on Tuesday began laying off nearly 3 percent of its total workforce — or about 6,000 employees. "We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace." a Microsoft spokesperson told The Hill in an emailed statement. The Washington state-based tech company has a total of 228,000 workers globally, according to the corporation's latest figures, with … |
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The tech industry is breathing a sigh of relief after the U.S. and China agreed to substantially lower tariffs, underscoring the prospect of de-escalation in a trade war that has been particularly challenging for the sector. The two countries appear to be walking back from a costly tit-for-tat exchange on tariffs, announcing a 90-day reduction in import taxes as they continue to negotiate a more lasting deal. … |
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Oscar-winning actor Jamie Lee Curtis said Monday that an artificial intelligence-generated video depicting her likeness was finally removed from Instagram after she made a public appeal directly to Meta CEO Mark Zuckerberg. Curtis said she had no luck going through the proper channels to try to get Meta to take down the AI-generated advertisement — which used manipulated footage of Curtis to make it seem as if she were endorsing … |
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Branch out with other reads on The Hill: |
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Trump administration rescinds Biden AI chip export rule |
The Commerce Department on Monday officially rescinded the former Biden administration’s artificial intelligence diffusion rule that would have placed caps on chip sales to most countries around the world. The Bureau of Industry and Security, in a release published Tuesday, said the Biden-era rule, which was supposed to go into effect Thursday, would “have stifled American innovation and saddled companies with burdensome … |
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Coinbase joins S&P 500 in industry first |
© Associated Press/Richard Drew |
Cryptocurrency exchange Coinbase will become the first crypto exchange to join the S&P 500 index next week, marking a major step in the cryptocurrency industry's push to break into traditional finance. Coinbase will replace Discover Financial Services, which will be bought by Capital One Financial. Coinbase Global's stock surged Tuesday in the wake of the news, jumping 25.1 percent on Wall Street. The inclusion of Coinbase in the S&P 500 was quickly celebrated by industry figures who are optimistic about their future in the broader financial ecosystem. The industry has worked for years to move past the scandals that roiled its reputation. The inclusion shows how traditional finance structures are receptive to this change. "As the saying goes… 'First they ignore you. Then they laugh at you. Then they fight you. Then they add you to the S&P 500.' …or something like that," Coinbase's official account posted on X Monday. Coinbase CEO Brian Armstrong said it shows "crypto is here to stay." "Amazing. Remember when they laughed at us," Tyler Winklevoss, the co-founder of the crypto exchange Gemini wrote on X. |
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News we've flagged from the intersection of tech and other topics: |
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Two key stories on The Hill right now: |
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A federal judge ruled Tuesday that President Trump can invoke the Alien Enemies Act (AEA) to remove Tren de Aragua members but determined the administration … Read more |
| Qatar Airways is set to announce that it secured an agreement to purchase 150 aircraft from Boeing while President Trump is in Doha on Wednesday, a … Read more |
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Opinion related to tech submitted to The Hill: |
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You're all caught up. See you tomorrow! |
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