Squawk on the Street Court Blocks Trump Tariffs, Nvidia Surges, the "TACO Trade" 5/29/25
May 29, 2025
A federal trade court's ruling halts President Trump's tariffs, sparking lively market reactions. Nvidia sees a share surge following impressive earnings and insights from CEO Jensen Huang about China. The emerging concept of the 'Taco trade' highlights the interplay of tariffs and trading strategies. Meanwhile, Elon Musk's departure from the Trump Administration raises eyebrows. Salesforce faces challenges despite a strong quarter, as market sentiments shift with turbulence in the corporate landscape.
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Court Blocks Trump's Tariffs
- A federal trade court blocked President Trump's sweeping tariffs announced in early April, ruling he lacked authority under an old emergency economic powers law.
- The tariffs on dozens of countries and fentanyl-related levies on Canada, Mexico, and China are voided, with the administration given 10 days to implement the ruling.
NVIDIA's China Market Challenges
- NVIDIA's market share in China dropped from 95% to about 50% due to product sales limitations.
- Access to China is vital since 50% of AI researchers are there, influencing which technology stacks dominate globally.
China's AI Research Strategic Importance
- China's home to 50% of the world's AI researchers, making it a strategic market for AI technology platforms.
- Platforms succeed with the most developers; America wants global developers to build on its technology stack for AI dominance.