Stocks climbed yesterday after President Trump announced new tariffs—but delayed their enforcement. Meanwhile, Crocs had an impressive day on Wall Street, as the foam footwear brand crushed revenue expectations.

Trump Introduces Reciprocal Tariffs

The much-anticipated reciprocal tariffs are coming… but not until April. President Trump stated yesterday that federal agencies will first conduct a review to determine how best to match other nations’ tariff rates before the plan is implemented. This marks his most significant attempt yet to reshape global trade policies.

Trump has repeatedly pledged to establish reciprocal tariffs, emphasizing, “If they tax us, we tax them the exact same.” His administration argues that current trade agreements—especially with South Korea, India, and the EU—are unfair to the U.S:

• The U.S. maintains an average tariff rate of 3%, aligning with wealthier nations like Canada, Japan, and the UK, but significantly lower than India (17%).
• Some nations use high tariffs to shield domestic industries, particularly in South America and Africa.
• Trump singled out the EU’s Value Added Tax (VAT) and criticized France and Canada for imposing digital service taxes on U.S. tech firms.

Historical Context:

Following World War II, 23 major economies signed the General Agreement on Tariffs and Trade (GATT), fostering international trade cooperation. This laid the groundwork for the World Trade Organization, where tariffs were largely avoided.

However, the Trump administration sees higher tariffs as a way to revitalize U.S. manufacturing while generating revenue for tax cuts. Critics argue that these changes could raise consumer costs and provoke retaliatory measures from trade partners.

Rewriting the tariff code will require reevaluating hundreds of trade policies in less than two months. The delay suggests that Trump may be open to negotiations before April.

Key Headlines

RFK Jr. Confirmed as Health Secretary: Robert F. Kennedy Jr, a vocal vaccine skeptic and environmental lawyer, was confirmed by a 52–48 Senate vote. The only Republican opposing the nomination, Senator Mitch McConnell, cited his personal experience as a polio survivor, saying he “will not endorse the questioning of proven treatments.”

As head of the Department of Health and Human Services, Kennedy will oversee the CDC, FDA, and other key health agencies. His anti-pharmaceutical stance is expected to shake up the industry, particularly Merck and Pfizer, given his past legal battles against them.

Zelensky Pushes Back on Peace Talks: A day after President Trump announced plans to negotiate directly with Vladimir Putin on Ukraine’s behalf, Ukrainian President Volodymyr Zelensky stated that his country would not accept any deal negotiated without its input.

Trump suggested a potential resolution could involve redrawing Ukraine’s borders and blocking its NATO membership, mirroring Russia’s original demands. Ukraine, invaded in 2022, has long sought NATO security guarantees, a stance opposed by Moscow.

Apple Teases Major Product Reveal: In a cryptic X post, CEO Tim Cook announced the arrival of a “new family member” on February 19. Speculation suggests Apple will unveil an updated iPhone SE with Face ID and a larger display—likely featuring Apple’s first in-house cellular modem, replacing Qualcomm components. Apple also introduced the Powerbeats Pro 2 earbuds this week and launched Apple TV+ for Android.

Robinhood Surges on Crypto Boom

Robinhood has shaken off its meme stock label, posting better-than-expected Q4 results that showcase its growth beyond speculative trading.

The brokerage reported $1 billion in Q4 revenue, up 115% year-over-year, surpassing forecasts of $946 million. The surge was largely driven by a 700% increase in crypto trading revenue. Robinhood’s stock jumped 14%, hitting its highest level since 2021.

Crypto Revival Boosts Brokerages:

• Robinhood earned $358 million from crypto trades alone last quarter.
• Its offerings remain limited (22 tokens vs. Coinbase’s 200+), but analysts see its recent growth as a sign of platform maturity.
• Coinbase also posted its strongest quarter in three years, reporting $2.3 billion in revenue.

Industry Outlook:

Robinhood currently oversees $195 billion in customer assets, far behind Fidelity and Schwab, which manage trillions. However, its crypto strength and recent IRA expansion could help narrow the gap.

Amazon’s RTO Challenges: No Desks, No Parking

Amazon’s push to bring employees back to the office five days a week is hitting logistical roadblocks, including desk shortages and parking congestion.

A report from The Wall Street Journal revealed that:

• Amazon is short 800+ desks in San Francisco, forcing some workers to share spaces.
• In Austin, a security guard estimated 2,000 employees were competing for just 900 parking spots.
• Due to overcrowding, Amazon has delayed its return-to-office (RTO) mandate in New York City and other locations.

An Amazon spokesperson downplayed concerns, stating that most employees are adjusting smoothly. However, some workers lack direct teammates in their assigned offices, meaning many still work virtually, just from different buildings.

Other Notable Updates

• Federal Prosecutor Resigns Over NYC Case: Manhattan’s top federal prosecutor, Danielle Sassoon, resigned after refusing to comply with DOJ orders to drop a corruption case against Mayor Eric Adams.
• Nissan-Honda Merger Falls Apart: The automakers abandoned their $60 billion merger talks due to disagreements on corporate structure.
• Blue Origin Lays Off 10% of Workforce: Jeff Bezos’s space company announced job cuts amid shifting priorities.
• Nathan’s Famous Considers Sale: The iconic hot dog brand, known for Joey Chestnut’s eating feats, is exploring a potential acquisition.