⚖️ Tariff Updates

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Trump’s Tariff Spike Alarms Small Business Founders

A coalition of 38 female founders of consumer product startups has issued an open letter warning that President Trump’s sharply increased tariffs on Chinese goods—now at 145%—could financially devastate small businesses. While some countries received a temporary 90-day reprieve with a 10% tariff cap, China did not. The letter highlights specific examples, such as Juliet Wine’s founder facing a $200,000 surprise bill due to tariffed packaging components and a home-cleaning brand seeing an 80% cost spike on imported refillable pouches. With no immediate domestic alternatives, these startups are left with few options.

Unlike large corporations that have the leverage and capital to adjust supply chains or negotiate with suppliers, small startups often operate on thinner margins, tighter contracts, and less flexibility. Tariffs like these can quickly erode profitability or make continued operation unsustainable. Founders are calling for temporary exemptions, alternative relief measures like grants or tax incentives, and a formal government assessment of the economic burden on small businesses. This is not just about import taxes—it’s about survival for product-focused startups still scaling.

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Major Tariff Relief for Big Tech—But Not Everyone Wins

The Trump administration has announced sweeping tariff exemptions for key tech products, carving out smartphones, laptops, hard drives, and semiconductor manufacturing equipment from the steep 125% tariffs imposed on Chinese imports. These exemptions, backdated to April 5, also apply to the universal 10% tariff recently introduced. This move follows weeks of uncertainty and intense lobbying from major tech players and signals a clear effort to shield the industry from disruption—at least temporarily. For established companies like Apple and Nvidia, the exemptions represent massive cost savings and supply chain stability

U.S. Export Controls Hit AMD and Other AI Chipmakers

AMD has disclosed that new U.S. export license requirements on certain AI chips, including its MI308 GPUs, could materially impact its financials—potentially costing the company up to $800 million. These restrictions, part of broader export controls targeting China, Hong Kong, Macau, and other countries deemed high-risk (designated as “D:5”), reflect the U.S. government’s ongoing effort to limit foreign access to advanced semiconductor technology critical to AI development. Similar rules have hit Nvidia and Intel, with Nvidia projecting a $5.5 billion impact this quarter alone. Startups building products on top of AMD, Nvidia, or Intel’s AI chips—or who plan to export AI-enabled technologies—should take these new restrictions seriously. While consumer CPUs remain largely unaffected, GPUs and AI accelerators intended for training and inference workloads are now under tight scrutiny. If your startup serves customers in China or other restricted regions, you may need to apply for export licenses or explore alternative markets and technologies.

DeepSeek in Washington’s Crosshairs

The Trump administration is reportedly weighing restrictions on Chinese AI lab DeepSeek that could bar the company from buying Nvidia chips and block U.S. access to its AI services. These potential actions align with broader efforts to curb China’s advancement in artificial intelligence, particularly when it's fueled by American hardware or users. The news follows recent steps by the White House to tighten export controls on Nvidia’s AI chips—a continuation of the Biden-era policy framework. Startups using or experimenting with DeepSeek’s AI models—particularly because of their lower cost—may soon lose access if restrictions are imposed. If you're building infrastructure or products on top of DeepSeek, it's wise to explore alternative providers now to avoid being caught flat-footed. The U.S. government may also scrutinize any startup found to be exporting AI workloads or enabling access to restricted foreign labs, which could introduce compliance risks or threaten investor confidence.

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