Trump’s Tech Tariff U-Turn

Hey Superheroes,

Volatility is back in the markets this week. We also saw some action in currency markets, with the Aussie dollar gaining a bit against the US dollar. But global trade tensions are once again bubbling – yep, Trump’s back in the spotlight.

Let’s get into it.

Tech Tariff Is Back On The Table

Last Friday, a temporary reprieve seemed to give some breathing room to the tech world. More than 20 categories of consumer electronics arriving from China – subject to a 145% tariff, plus an additional 10% “baseline” tariff applied by most nations – were initially reported to be exempt.

Products on the list include computers, phones, hard-drives, routers  and semiconductors (yep, the all-important chips that power everything from your LED lights to your phone). 

But the good news didn’t last long. In a quick turnaround, Trump announced that those same tariffs will, in fact, still apply to many popular consumer electronics, albeit under a new ‘semiconductor’ tariff category expected soon.

🔌 A procedural move

The reprieve isn’t a retreat, it’s a reshuffle. 

Here’s what’s happening:

• Consumer electronics, previously facing immediate tariffs, are being reassigned to a “semiconductor” category
• A new sectoral tariff on chips and related devices is expected within 1 to 2 months
• Tariffs will likely be lower than 145%, but could still exceed the 10% flat rate currently applied elsewhere

Looks like Friday’s exclusions were a hint at what’s to come under new ‘semiconductor’ tariffs.

Another Gamble For The Star

Star Entertainment Group (ASX: SGR) has lodged its half year financial results more than a month late, reporting a A$302 million loss.

The Star is now turning to U.S. casino operator Bally’s and Bruce Mathieson for a rescue deal.

The company has secured the first A$100 million tranche of a rescue package, with an additional A$200 million on the table, subject to a shareholder vote and regulatory sign-off. 

🎰 Rescue… or not?

After trading suspended for over a month due to missed reporting deadlines, Star shares resumed trading on the ASX on Wednesday.

Despite receiving the financial lifeline, the company reiterated there is still “material uncertainty” around its ability remains an ongoing concern.

🔦 Some other things we’re shining the Spotlight on:

TACO TUMBLES: Collins Foods (ASX: CKF), the operator of KFC and Taco Bell in Australia, has decided to either sell or close its Taco Bell stores and focus on KFC. Taco Bell has faced increased competition from Guzman y Gomez. Collins Foods shares dipped slightly on the news on Tuesday.

GOLDEN DAYS FOR EVOLUTION: Evolution Mining (ASX: EVN) just struck gold – literally. The miner extended the life of its Cowal gold mine in NSW until 2042, with shares rising 4% following the announcement on Tuesday. The move is expected to boost long-term output and position Evolution well amid strong gold prices.

RIO’S ROUGH RUN: Rio Tinto’s (ASX: RIO) iron ore exports have had their weakest start to the year in a decade off the back of wild weather and big storms. The miner is shelling out A$150 million to mitigate the damage.

Next week’s a short trading week with Easter Monday and the Anzac Day public holiday falling on Friday. That means Spotlight will be taking a little break too but don’t worry, we’ll be back soon. 

Enjoy the extra-long weekend!

Keep up to date on the markets by following us on Instagram @superheroau.