The prospect of tariffs under President Donald Trump’s administration has rattled global stock markets. The president has already fired the first shot by threatening tariffs on Columbia, although ultimately Colombia reached a deal to avoid them. Trump imposed tariffs on several countries in his first term and has vowed to double down on them in his second term.
If the trade war and tariff threat wasn’t enough, reports of Chinese artificial intelligence startup DeepSeek’s new AI model led to a massive selloff in Nvidia (NVDA) and other chip names. While China’s prowess in manufacturing is well-known, DeepSeek claims to have developed its AI model at a fraction of the cost. The model would only add to the “AI war” between the U.S. and China, and Trump has already termed it a “wakeup call” for U.S. companies.
