TL;DR

Trump eyes new 15% tariffs; foreign investor tax bill advances; Nvidia, tech face China export fallout.

Highlights

• Trump administration considers 15% tariffs on broad imports for 150 days under Trade Act Section 122 after court setback on IEEPA tariffs; legal uncertainty persists1.
• Trump accuses China of violating trade agreements following April tariffs; S&P 500 , Nasdaq 100, Apple , and Nvidia shares fall7.
• "One Big Beautiful Bill" could raise foreign investor tax on U.S. assets up to 20%, with possible treaty overrides; Senate approval pending8.
• U.S. to increase weapons sales to Taiwan above $18.3B; Taiwan's defense budget faces internal opposition; China warns of rising tensions6.
• U.S. to revoke visas for 277,398 Chinese students in critical fields, escalating U.S.-China friction5.
• Nvidia and AMD to launch China-specific AI chips in July amid tighter U.S. export controls; Nvidia faces $8B Q2 revenue hit3.
• Synopsys suspends sales and new orders in China; Siemens EDA may follow, highlighting broader impact of U.S. semiconductor export restrictions4.
• DOJ seeks Google Chrome divestiture and end to $20B+ Apple payments in antitrust case; judge to rule by August2.
• ECB expected to cut deposit rate to 2.00% on June 5, citing trade risks and weak eurozone outlook9.
• Sanofi and Regeneron shares drop sharply after mixed COPD drug trial results; Regeneron market cap falls ~12%10.
• SEC clarifies self/custodial staking on public PoS networks not securities; guidance is non-binding11.
• U.S. warns it may exit Ukraine talks, offers 30-day ceasefire; threatens further sanctions if Russia continues hostilities16.

Commentary

Trade and regulatory risks are driving market sentiment ahead of the open. The Trump administration is moving to impose temporary 15% tariffs on a wide range of imports after a court setback on IEEPA-based tariffs, leveraging Section 122 of the Trade Act1. This adds a new layer of legal and policy uncertainty for global supply chains and U.S. importers. The renewed trade friction is compounded by Trump's accusation that China violated trade agreements, which has already weighed on major indices and key tech names such as the S&P 500 , Apple , and Nvidia 7.

The "One Big Beautiful Bill" raises the prospect of higher U.S. taxes on foreign investors, with potential treaty overrides that could significantly impact demand for U.S. assets, especially Treasuries and equities. If enacted, this could trigger capital outflows and pressure the dollar8. Meanwhile, the ECB is expected to cut its deposit rate to 2.00% next week amid a weak eurozone outlook and explicit concerns over the impact of rising protectionism and tariffs, including those from the U.S.9.

Tech and semiconductor sectors remain in focus. Nvidia and AMD are launching China-specific AI chips to comply with U.S. export restrictions, but Nvidia still expects an $8B Q2 revenue hit3. Synopsys halting sales in China, with Siemens EDA possibly following, underscores the broader fallout from U.S. semiconductor controls4. The DOJ's push for Google Chrome divestiture and an end to $20B+ in Apple payments could reshape the tech landscape, pending a judge's decision by August2.

Geopolitical tensions remain elevated. The U.S. is set to ramp up arms sales to Taiwan, but internal political wrangling threatens Taiwan's defense budget6. The move to revoke nearly 280,000 Chinese student visas further strains U.S.-China relations5. In Europe, the ECB's dovish tilt is balanced by warnings about the risks of global trade fragmentation9. On the regulatory front, the SEC's non-binding clarification that self/custodial staking on PoS networks aren't securities is a modest positive for crypto, though uncertainty lingers11.

Traders should monitor tariff developments, Senate action on the tax bill, and any escalation in U.S.-China or Russia-Ukraine tensions for further market direction116.