Our No.1 AI Stock Has Nothing to Do With Tech

Nvidia CEO Jensen Huang recently said AI requires "100 times more" power. We believe that means the best way to invest in AI right now has nothing to do with technology ... And everything to do with energy. One stock appears to be perfectly positioned...

Trump's erratic trade policies are baffling businesses, threatening investment and economic growth

PAUL WISEMAN
March 06, 2025

WASHINGTON (AP) -- Marc Rosenberg, founder and CEO of The Edge Desk in Deerfield, Illinois is getting ready to introduce a fancy ergonomic chair designed to reduce customers' back pain and boost their productivity. He figures the most expensive one will sell for more than $1,000. But he can't settle on a price, and he is reluctantly reducing the shipment he's bringing to the United States from China.

There's a reason for his caution: President Donald Trump's ever-changing, on-again, off-again tariff war with America's three biggest trading partners - Mexico, Canada and China.

On Wednesday, the mercurial president once again changed course: A day after he imposed 25% taxes - tariffs - on all imports from Canada and Mexico, he backpedaled and exempted autos crossing America's northern and southern borders. Well, for 30 days anyway.

This is after having already postponed his original tariffs against Canada and Mexico in February by 30 days.

Rosenberg and his ergonomic furniture are contending with a 20% tariff on imports from China - which Trump on Tuesday raised from 10% -- but he's not sure where the tariff will actually land.

"The misdirection is making it very tough to plan for the year,'' he said.

Tariffs cause economic pain in part because they're a tax paid by importers that often gets passed along to consumers, adding to inflationary pressure. They also draw retaliation from trading partners, which can hurt all economies involved.

But import taxes can cause economic damage in another way, too: by complicating the decisions businesses have to make, including which suppliers to use, where to locate factories, what prices to charge. And that uncertainty can cause them to delay or cancel investments that help drive economic growth.

"It creates an enormous amount of uncertainty for multinational companies that sell products worldwide, that import from the rest of the world, that run these complex supply chains through multiple countries," said Eswar Prasad, an economist at Cornell University. "The uncertainty is going to be very unsettling for businesses and ... it will hurt business investment on net."

During Trump's first-term trade battles, U.S. business investment weakened late in 2019, convincing the Federal Reserve to cut its benchmark interest rate three times in second half of the year to provide some offsetting economic stimulus.

Trump 2.0 is even more unnerving to business. The first Trump administration imposed tariffs on specific targets -- steel and aluminum and most goods from China -- after lengthy investigations.

This time, Trump has invoked his power to declare a national emergency -- ostensibly over the flow of illegal drugs and immigrants across U.S. borders -- to impose tariffs on Canada, Mexico and China with the stroke of a pen. And he's expanded his targets. Next month, for example, is intends to impose "reciprocal tariffs'' on countries that charge higher import taxes than America does.

His tariffs on Canada and Mexico effectively blow up a 2020 North American trade deal he negotiated himself five years ago.

"Past trade agreements simply don't mean much if the president can unilaterally violate them and impose tariffs with no checks at all," said Douglas Irwin, an economist at Dartmouth College.

Adding to the uncertainty: It's unclear what Trump is trying to achieve by plastering tariffs on American trading partners. Sometimes he cites border security. Sometimes he emphasizes the revenue that tariffs can generate for the Treasury -- money that can help finance his proposed tax cuts. Sometimes he points to America's big trade deficits with most other countries. And he's falsely accused Canada of banning U.S. banks when in fact 16 American banks operate north of the border, according to the Canadian Bankers Association.

Since the goals are cloudy, it's hard to see what it will take to make Trump's tariffs go away.

Not only that, but he's imposed the tariffs erratically, creating even more confusion. For instance, his administration had to reverse itself last month after ending a customs loophole - the "de minimis" exemption -- allowing duty-free entry into the United States of packages from China and Hong Kong worth less than $800. Turned out, the U.S. postal service needed more time to figure out how to collect the duties.

Businesses are baffled. "I've talked to multiple companies that are saying, 'We're not moving forward with any investment. We need this to be settled,'" said trade lawyer Gregory Husisian at the law firm Foley & Lardner. At least in Trump's first term "they knew what the ground rules were. Now they don't know if we're playing Monopoly or tic-tac-toe.''

Respondents to the Institute for Supply Management's manufacturing survey, out Monday, voiced complaints about the tariff uncertainty. "Customers are pausing on new orders as a result of uncertainty regarding tariffs," said a transportation equipment company. "There is no clear direction from the administration on how they will be implemented, so it's harder to project how they will affect business." A chemicals company griped: "The tariff environment regarding products from Mexico and Canada has created uncertainty and volatility among our customers.''

"Right now, the tariffs are putting everybody off balance because of their unpredictability and uncertainty," said John Gulliver, president of the New England-Canada Business Council.

Taylor Samuels, the owner of Las Almas Rotas, a bar and restaurant in Dallas, depends on Mexico for much of the alcohol he offers.

The uncertainty surrounding the tariffs, including the potential impact on the price of raw materials like steel and lumber, are forcing him to review his plans to build a new restaurant.

"That construction budget is now under review and may likely be delayed ... as I recalculate costs that have already been budgeted," he said.

Similarly, Sandya Dandamudi of GI Stone, a stone supplier in Chicago for projects ranging from the Obama Presidential Center to private homes and affordable housing developments, said developers are having to rethink their plans.

"Developers of commercial projects like high-rises and hotels budget two years in advance, so they don't account for new tariffs," she said. "Those budgets will be blown.''

Dandamudi said that companies will either succeed in passing the tariffs along to their customers or they will be forced to cancel projects.

"The tariffs will be devastating for small businesses like ours," she said. "Going forward, we won't be able to sign any new contracts unless clients address the tariffs."

Holly Seidewand, owner of First Fill Spirits, a specialty spirits shop in Saratoga Springs, New York, that sells Canadian whisky and other specialty spirits, said her plans for the future have been put on hold due to the tariffs. Her original plan for 2025 was to almost double her inventory and the selection she offered.

"For now, we have no plans of adding more shelving or space for new items, we will stick to the footprint we have," she said. "This will delay the growth of our business, making us a bit stagnant.''

____

D'Innocenzio and Anderson reported from New York. Associated Press Staff Writers Rodrique Ngowi in Billerica, Massachusetts and Christopher Rugaber in Washington contributed to this report.

Continue Reading...

Popular

Trump's 'Big, Beautiful Bill' Offers Seniors A $6,000 'Bonus' Tax Deduction: Here's How You Qualify For The Benefit

Trump's Big, Beautiful Bill offers a $6,000 senior bonus deduction from 2025-28. Couples can save $12,000. Retirees with incomes up to $75,000 benefit most.

A judge resisted Trump’s order on gender identity. The EEOC just fired her

The federal agency charged with protecting workers’ civil rights has terminated a New York administrative judge who , including President Donald Trump’s executive order decreeing male and female as .

How High Will Gold Surge? - Ad

Gold is on fire - hitting $3,500 and outpacing stocks, tech, even Bitcoin. Analyst Sean Brodrick called it, and now he's forecasting a surge to $6,900. But the biggest opportunity isn't bullion. It's a little-known investment that's returned up to 1,000x more than physical gold.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

Crypto Genius: These 5 Altcoins Could Crush Bitcoin in 2025 - Ad

On August 30th, two powerful "Wealth Drivers" ignite what could be a 2025 super bull run-backed by Trump. The altcoin market as a whole has already soared 132,721% over the past ten years and could surge again. A $900 stake could turn into $108K over 12 months. This is The Great Gain of 2025.

Mark Cuban Raises Employee Wages After Learning Of Government Aid Dependence

Mark Cuban, owner of the NBA's Dallas Mavericks, expressed his dismay upon learning that some of his employees were reliant on government aid programs.

Mystery Seller Behind $105 Million Plot Next to Jeff Bezos Estate Finally Revealed

A plot of land neighboring Jeff Bezos' property in Miami was sold for a staggering $105 million. The undeveloped lot was sold by German investor Mikhail Peleg.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Trump vents online about service provider after conference call marred by glitch

WASHINGTON (AP) — On Monday afternoon, the president of the United States was just another person complaining online about his service provider.

What's in the latest version of Trump's big bill moving through the Senate

WASHINGTON (AP) — Republicans are inching closer to getting their tax and spending cut bill through Congress with a final Senate vote likely late Monday or early Tuesday.

The Unlikely Duo Rethinking Wearable Technology - Ad

Why did a surgeon and Snap exec team up? They saw the missing ingredient in the $84T wearables market: behavior. So they built Emteq and invented smart glasses sensors to track real-time expressions, unlocking insights into why we do things. With a $15M term sheet already secured, Emteq is what Big Tech's missing.

What's in the latest version of Trump's big bill that passed the Senate

WASHINGTON (AP) — Republicans are getting closer to the finish line in getting their tax and spending cut bill through Congress with a final House vote possible on Wednesday.

Trump asks Supreme Court to remove 3 Democrats on the Consumer Product Safety Commission

WASHINGTON (AP) — The Trump administration on Wednesday asked the to remove three Democratic members of the , who were fired by President and then reinstated by a federal judge.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Quantum Stocks Surge And Stumble: Here's What Happened This Week

Quantum Computing announced a $200 million private placement, Microsoft's CEO said quantum computing could take scientific advancements to the next level and more from the week.

US brings charges in North Korean remote worker scheme that officials say funds weapons program

WASHINGTON (AP) — The Justice Department announced criminal charges Monday in connection with a scheme by North Korea to fund its weapons program through the salaries of remote information technology workers employed unwittingly by U.S. companies.

Back This Medical AI Tech - Ad

You don't often find healthcare tech company valued at $4M. HeartSciences is an exception. With $75M invested, including R&D, clinical trials, and product development, their patented AI software is approaching FDA submission, a potential major inflection point.

FDA requires updated warning about rare heart risk with COVID shots

WASHINGTON (AP) — said Wednesday it has expanded existing warnings on the two leading COVID-19 vaccines about a rare heart side effect mainly seen in young men.

FDA Submission Expected This Summer - Invest Before It Happens - Ad

This company is making heart disease easier to detect with AI. Their tech has officially been designated a "Breakthrough" by the FDA. You now have an opportunity to get in at a potential inflection point.

FDA vaccine official restricted COVID vaccine approvals against the advice of agency staff

WASHINGTON (AP) — The working under Health Secretary recently of two COVID-19 vaccines, disregarding recommendations from government scientists, according to federal documents released Wednesday.

Diddy Jury Deadlocked On Racketeering Conspiracy Charge As Verdicts Reached On Sex Trafficking Counts — Jurors To Return Wednesday

Jurors in Sean "Diddy" Combs' trial reached verdicts on four charges related to sex trafficking but remain deadlocked on the racketeering conspiracy charge, with deliberations set to continue.

The Missing Ingredient for Big Tech's $3T Recipe? - Ad

Big Tech doesn't build everything; they buy what's next. And only Emteq's tech offers real behavior insights for smart glasses, key to unlocking the $3T XR market. Their patented sensors track live facial muscle movements. With health-focused smart glasses in demand, only Emteq has this tech.

Autonomous Vehicles Hit Their 'ChatGPT Moment' — Best Stocks To Watch Now

Autonomous vehicles are entering their ‘ChatGPT moment' as AI unlocks real-world deployment. Discover 28 top stocks in a $1.2 trillion market.

Trump's Approval Ratings, Tariff Deadlines, Schumer's Criticism, And Defense Budget Shifts: This Week In Politics

Trump's approval ratings drop after Iran attack, hints at tariff deadline flexibility. SC limits judges' power, Schumer criticizes GOP budget, defense budget shifts to missiles and drones.

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Boeing Rises 2.8% After Key Trading Signal

A significant trading signal occurred for Boeing stock, as it demonstrated a power inflow at $209.02, after which BA rose up to 2.8%.

Our No.1 AI Stock Has Nothing to Do With Tech - Ad

Nvidia CEO Jensen Huang recently said AI requires "100 times more" power. We believe that means the best way to invest in AI right now has nothing to do with technology ... And everything to do with energy. One stock appears to be perfectly positioned...

Datadog Stock Surges On S&P 500 Inclusion

Datadog Inc (NASDAQ:DDOG) shares are trading higher in Wednesday's after-hours session after it was announced that the company will join the S&P 500.

Bernie Sanders Warns Of 'Concentration of Ownership' In US Companies: 'That's Power'

Bernie Sanders claims Wall Street giants hold majority of US corporations, giving them power to steer economy & politics. Wants reform & better wages

How High Will Gold Surge? - Ad

Gold is on fire - hitting $3,500 and outpacing stocks, tech, even Bitcoin. Analyst Sean Brodrick called it, and now he's forecasting a surge to $6,900. But the biggest opportunity isn't bullion. It's a little-known investment that's returned up to 1,000x more than physical gold.

BigBear.ai (BBAI) Stock Soars 21%: What's Going On?

Shares of BigBear.ai are trading sharply higher Tuesday afternoon. The rally comes without any new company-specific announcements.

Trump Brokers Peace Deal Between DR Congo And Rwanda — Now Eyes Billions In US Investment

Trump brokers a peace deal between DR Congo and Rwanda, aiming to end conflict and unlock U.S. investment in critical African minerals.

Crypto Genius: These 5 Altcoins Could Crush Bitcoin in 2025 - Ad

On August 30th, two powerful "Wealth Drivers" ignite what could be a 2025 super bull run-backed by Trump. The altcoin market as a whole has already soared 132,721% over the past ten years and could surge again. A $900 stake could turn into $108K over 12 months. This is The Great Gain of 2025.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Cash-Rich IonQ To Capture 20% Of Quantum Market By 2035

IonQ shares climb as investors rally behind its bold quantum growth strategy and long-term market potential.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright technicaltrading.org
Privacy Policy | Terms of Service