While millions of American workers took time off following the Super Bowl, the stock market stayed active, rising throughout the day. Nvidia and other tech giants led gains, while domestic steel companies saw an uptick after President Trump announced new tariffs on imported metals.

Trump Imposes Tariffs on Steel and Aluminum

During his flight to the Super Bowl, President Trump revealed plans to implement a 25% tariff on all imported steel and aluminum, which were officially enacted yesterday.

Key Takeaways:

• The U.S. imports 80% of its aluminum and 17% of its steel, with major suppliers including Canada, Mexico, Japan, South Korea, and Germany.
• In 2023, these imports amounted to ~$50 billion, with Canada as the largest contributor.
• While these tariffs may bolster U.S. steel production, they are expected to increase costs in the construction and auto industries.

Tariff Timeline:

• Last week, the U.S. delayed a 25% tariff on Mexican and Canadian imports.
• A 10% tariff on Chinese goods went into effect, triggering retaliatory tariffs from China.
• The move echoes Trump’s 2018 metal tariffs, which reduced U.S. steel imports by 35% but also led to retaliatory levies from the EU on American brands like Harley-Davidson and Levi’s.
• The EU has already warned of similar measures if Trump proceeds with additional tariffs.

Meta Announces Layoffs Amid AI Shift

Meta initiated job cuts affecting 4,000 employees, or 5% of its workforce, as part of its transition toward artificial intelligence development.

• CEO Mark Zuckerberg warned last month that low-performers would be let go as the company prioritized AI investment.
• Recent Tech Layoffs:
  • Workday: Cut 1,750 jobs (8.5%) to focus on AI.
  • Salesforce: Let go of 1,000 employees while expanding AI-related hiring.
  • Google: Offered buyouts ahead of expected cuts in hardware and platform teams.

The AI industry is projected to surpass $320 billion in investment this year, but investors worry that cheaper models may challenge Big Tech’s dominance.

Trump Moves to Eliminate the Penny

President Trump has directed the U.S. Treasury to halt penny production, calling the coin “unnecessary.”

• Each penny costs over 2 cents to manufacture.
• The U.S. Mint lost $85.3 million producing pennies last year.
• The proposal was originally floated by the Department of Government Efficiency, echoing past advocacy from President Obama and financial experts.

Who’s Impacted?

• The biggest loser is Artazn, a Tennessee-based company supplying zinc blanks for pennies.
• Coin-cashing companies like Coinstar may also take a hit.
• Retailers might shift to rounding transactions to the nearest nickel, expediting the transition to digital payments.

Tour de Headlines

• Elon Musk Seeks to Acquire OpenAI: Musk has reportedly offered $97.4 billion to purchase OpenAI, despite suing the company for allegedly straying from its nonprofit mission. OpenAI CEO Sam Altman dismissed the offer, jokingly offering to buy Twitter for $9.74 billion instead.
• McDonald’s International Sales Grow as U.S. Slows: While U.S. same-store sales fell 1.4%, McDonald’s saw international growth driven by Middle Eastern, Japanese, and Chinese markets.
• Trump Softens Stance on Foreign Bribery Law: The President issued an executive order suspending enforcement of the Foreign Corrupt Practices Act, arguing that it disadvantages U.S. businesses.

Real Estate Bidding Wars Continue

A fire-damaged home in Los Angeles’ Pacific Palisades neighborhood, listed at $999,000, attracted over 60 offers and is now under contract for well above its asking price. Despite wildfires reducing the value of many properties, demand remains high for land in prime areas.

Other Noteworthy News

• Hamas Delays Hostage Release: Originally scheduled for Saturday, the release was postponed following accusations that Israel violated their ceasefire agreement. President Trump reaffirmed that Palestinians would not have the right of return under his proposed redevelopment of Gaza.
• DOJ Drops Case Against NYC Mayor Eric Adams: The Justice Department instructed prosecutors to withdraw a public corruption case.
• Fed Chair Powell to Testify Before Congress: Jerome Powell will provide a semiannual economic update in congressional hearings today and tomorrow.
• Federal Judge Rules Against Trump’s NIH Funding Freeze: A federal court found the administration noncompliant in releasing blocked biomedical research funds.
• Hyatt Expands All-Inclusive Portfolio: The hotel giant has acquired Playa Hotels for $2.6 billion, strengthening its all-inclusive resort offerings.