Breakfast News: EU Tariff Retaliation
March 12, 2025
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Tuesday's Markets |
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| S&P 500 5,572 (-0.76%) |
| Nasdaq 17,436 (-0.18%) |
| Dow 41,433 (-1.14%) |
| Bitcoin $82,809 (+4.98%) |
1. Europe Retaliates in Tariff Trade War
The European Union has announced $28 billion in tariffs starting next month, in response to President Trump's 25% levy on imports of steel and aluminum, which came into effect Wednesday. The EU measures commence April 1, with expansions in the pipeline by April 13.
- Not only steel and aluminum: The retaliation will also include agricultural and other products, as the EU seeks to balance the value of trade hit by the U.S. tariffs while stressing that higher import costs hurt everyone.
- "We are ready to engage in meaningful dialogue": European Commission president Ursula von der Leyen is pushing for the resumption of talks "to explore better solutions with the U.S."
2. Agentforce to Boost SG's Development
Longtime Rule Breakers recommendation Salesforce (CRM -0.79%) has announced a five-year plan to invest $1 billion in its Singapore operations to develop generative AI offerings, tying in with Singapore's National AI Strategy.
- AI labor boost: Investing in the country's transformation to an AI development hub should boost the adoption of flagship AI product Agentforce, as Singapore Airlines revealed plans to incorporate it as part of its agentic AI program.
- The full Fool interview with CEO Marc Benioff: Tune in to Fool24 today at 3:00 PM Eastern for topics spanning agentic AI (of course), predictions on the direction of AI development and impact, plus management's philosophy on acquisitions versus growing internally, with insights around the 2020 purchase of Slack.
3. Chip Giants Assemble
Taiwan Semiconductor (TSM -0.18%) has proposed a joint venture with Nvidia (NVDA -0.10%), Advanced Micro Devices (AMD 0.59%), and Broadcom (AVGO -0.04%), according to Reuters. The arrangement would cover joint operation of Intel's (INTC 0.73%) foundry division.
- "Too busy doing AI and VMware": A number of companies have shown interest in buying Intel's various divisions, but Broadcom CEO Hock Tan was dismissive when asked about a possible chip design takeover.
- TSMC to take no more than a 50% stake: The move follows reports the Trump administration wants financial help for Intel, whose stock price has halved in the past 12 months after it posted an $18.8 billion net loss in 2024.
4. Stitch Fix Revenue Leaps
Stitch Fix (SFIX -1.42%) climbed up to 21% in after-hours trading yesterday, after beating analysts' expectations for second-quarter revenue and earnings, with loss per share of just 5 cents compared to an expected 11 cents. Active clients fell 15.5% year over year, though the company says its use of AI merchandising is helping inventory management.
- "Vast matrix of national and market brands in addition to our private brands": CEO Matt Baer pointed to the company's multibrand sources as a way to help "mitigate any potential impact from tariffs."
- The year ahead: Full-year guidance suggests a revenue rise to between $1.225 billion and $1.240 billion, though client attraction and retention are key things to watch.
5. Foolish Fun
You are Warren Buffett. Let's say Berkshire Hathaway has to use up its entire cash war chest (about $318 billion as of the end of 2024) as soon as possible. What business, or businesses, are you buying in this sell-off – and why? Debate with friends and family, or become a member to hear what your fellow Fools are saying!
