Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
EU warns new US tariffs exceed the 15% ceiling agreed in last summer’s trade deal
Trump introduced a new 10% global levy, with threats to raise it to 15%
Some EU exports like cheese, butter, plastics and textiles could face higher-than-agreed rates
Brussels pauses approval process, seeks clarity
What’s the Dispute?
The European Union says President Donald Trump’s new global tariff policy may violate the EU-US trade agreement struck last summer.
After the Supreme Court of the United States blocked Trump’s earlier “reciprocal tariffs,” the White House introduced a new 10% blanket tariff, later threatening to raise it to 15%.
According to the European Commission, the new global levy would be added on top of existing duties — potentially pushing tariffs on certain goods above the 15% cap agreed in the bilateral trade deal.
Which Products Are Affected?
Products that could exceed the ceiling include:
Cheese and butter
Plastics
Textiles
Chemicals
The US would also continue applying its 50% tariff on EU steel and aluminium, under the previous arrangement.
Key issue: The cumulative effect of tariffs may breach agreed limits.
Political & Trade Fallout
The EU had accepted what many described as a lopsided deal to:
Avoid a broader trade war
Maintain strong US security backing, especially on Ukraine
Now:
The European Parliament has paused ratification
EU trade chief Maros Sefcovic is seeking clarification from US officials
A transition period of up to four months may be required to sort out technical details
Can the Deal Be Saved?
Both sides say they want to preserve the agreement, but:
It’s unclear how quickly legal and technical adjustments can be made
The new tariffs can stay in place for up to 150 days
Uncertainty remains high, particularly for exporters in sensitive sectors.
Market Implications
Renewed trade policy volatility
Potential pressure on EU agricultural and industrial exporters
Heightened geopolitical risk premium in global markets
Bottom Line
The EU-US trade truce is under strain again.
If Trump’s new global tariffs are layered on top of existing duties, they could breach the 15% ceiling agreed just months ago, reopening tensions at a delicate moment for transatlantic relations.
The next four months will determine whether this becomes a technical adjustment — or the start of another trade confrontation.
Key Takeaways
EU says new US tariffs exceed agreed limits
Cheese, agriculture and industrial goods most exposed
Ratification paused pending clarification
Transition period likely needed to avoid escalation
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