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Decoding the economic fallout from DeepSeek and US tariffs

Investors need not shun regions outside America, despite escalating trade tensions, since Trump has been shown to be a pragmatist more than an ideologue, and could always pivot towards a deal that benefits his country

    • US President Donald Trump's administration has so far avoided the more extreme tariff scenarios mentioned in his election campaign, and instead exploited the taxes as leverage in negotiations on matters unrelated to trade.
    • US President Donald Trump's administration has so far avoided the more extreme tariff scenarios mentioned in his election campaign, and instead exploited the taxes as leverage in negotiations on matters unrelated to trade. PHOTO: AFP
    Published Tue, Feb 25, 2025 · 06:08 PM

    THE US tariffs are intensifying global trade uncertainties and rattling supply chains, compelling policymakers and investors to reassess the economic landscape. Amid the simmering geopolitical tensions, a relatively unknown Chinese artificial intelligence (AI) startup, DeepSeek, is emerging as a disruptive force, which has prompted a fundamental rethink of how AI will evolve.

    As US tariffs ramp up and supply-chain pressures mount alongside a paradigm shift in technological innovation, this column explores the potential implications for investors.

    These fees are a central pillar of President Donald Trump’s “America First” agenda. As it stands, the trade war rhetoric is gaining strong momentum, kicking off with tariffs on imports from China, Canada and Mexico.

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