Trump pushes for 25% tariffs on Apple and 50% tariffs on the EU… did we just start the next leg lower?… Jeff Clark’s bear market thoughts… a mystery AI product is coming… Louis Navellier’s “Liberation Day 2.0” investment framework
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Trade war drama is back
This morning, President Trump spooked investors by taking shots at Apple and the European Union (EU).
First, the President posted on Truth Social that the tech giant should pay a 25% tariff for iPhones made outside the U.S.
From Trump:
I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.
If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.
If Trump gets his way, prepare for a hefty price increase. The research shop Wedbush suggests that the new estimated cost of a U.S.-made iPhone 16 Pro would explode to $3,500, up from the current retail price of roughly $1,000.
About thirty minutes later, Trump took to Truth Social again to take a swing at the EU.
After writing that trade negotiations “are going nowhere,” the President recommended a straight 50% tariff on all EU goods beginning on June 1.
Here’s more from Trump:
The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with.
Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable.
As I write Friday morning, all three major stock indexes are lower, with the Nasdaq leading the declines.
Is this the beginning of the next leg down that master trader Jeff Clark has been predicting?
For newer Digest readers, Jeff is a technical trading expert. He uses a suite of indicators and charting techniques to profitably trade the markets regardless of direction – up, down, or sideways.
We’ve been tracking Jeff’s analysis in recent weeks. He believes we’re in a bear market that won’t bottom until later this fall somewhere around 4,125. That’s almost 30% lower than where it trades as I write Friday morning.
According to Jeff, we’ve recently reached the top of the massive bear-market rally that bulls have enjoyed since April’s Liberation-Day lows.
So, what’s next?
Let’s get an update on his thinking from his Morning Update today. After highlighting the Trump news, Jeff writes:
So, the computers are hitting the “sell” button. We’ll likely see most of the damage right after the opening bell.
I suspect most traders will simply close whatever short-term positions they have and head off for the weekend, and not deal with whatever other posts hit the newswires today.
Now, though Jeff is bearish, he’s quick to temper expectations about the size of this prospective selloff.
In fact, this morning, he recommended that his subscribers take profits on their S&P short position. If that sounds counterintuitive, here’s his thinking:
I do think the broad stock market has farther to fall in the weeks ahead.
But some of the daily technical indicators I follow are now dipping into oversold territory. This could lead to a bounce attempt early next week.
I’d rather not risk holding our put position through that sort of action.
So, let’s take our profits now.
We’ll look to re-enter a similar position if the market does indeed attempt to rally early next week.
I’ll keep you updated on Jeff’s bear market analysis as it develops. If you’d like to get all Jeff’s updates and trade alongside him, click here to learn more.
There’s a new, mystery AI hardware product in the works
In a move that has Silicon Valley buzzing, design guru Jony Ive is joining forces with OpenAI CEO Sam Altman to build an AI device.
You’ve likely heard of Altman. He’s one of the most notable faces of AI as the CEO of OpenAI, the company behind ChatGPT.
If you’re not familiar with Ive, he was Apple’s Chief Design Officer – the creative force behind the iPhone, iPod, iPad, and MacBook.
So, what’s coming?
Here’s The Wall Street Journal:
Altman and Ive offered a few hints at the secret project they have been working on.
The product will be capable of being fully aware of a user’s surroundings and life, will be unobtrusive, able to rest in one’s pocket or on one’s desk, and will be a third core device a person would put on a desk after a MacBook Pro and an iPhone.
The Journal earlier reported that the device won’t be a phone, and that Ive and Altman’s intent is to help wean users from screens.
Altman said that the device isn’t a pair of glasses, and that Ive had been skeptical about building something to wear on the body.
Speculation is that it’s less “smartphone 2.0” and more “AI assistant reimagined in physical form.” But whatever it is, Altman is talking big about it.
He told his employees that they have “the chance to do the biggest thing we’ve ever done as a company here.” And he’s said that OpenAI will ship this product “faster than any company has ever shipped 100 million of something new before.”
I hate the cliché “pounding the table” but…
That’s what I’ve been trying to do for months here in the Digest.
Please understand: AI is arriving faster than most people realize.
The average American may have heard of ChatGPT, but they have no idea about the scale of transformation barreling toward us.
I’ve written extensively about the utopian and dystopian potential for AI, zeroing in on the massive wealth concentration it’s going trigger. If this new mystery product is on par with Altman’s expectation, it will be a significant inflection point within the wider economic/wealth-shift evolution.
Altman and Ive appear to be building a product meant to redefine how humans interact with machines – a brand-new category of tech that we’ve never seen. We could be in “Apple-before-the-iPhone” territory.
Please recognize the enormous technological, social, economic, and investment shifts that are on the horizon.
Zeroing in on investing, OpenAI is a private company so not traded. But if you want to try to front-run whatever this new product is, component companies with exposure to low-power AI, sensors, and premium consumer design are good places to begin your research.
I’ll bring you more specifics from our experts in the coming weeks/months. But for today, let’s see the writing on the wall…
AI is no longer some sci-fi fantasy decades away. It’s at our doorstep.
One of the market winners of this evolution toward AI has been, and will continue to be, Nvidia
Let’s go to Nvidia’s CEO, Jensen Huang:
AI, like electricity and internet, is essential infrastructure for every nation.
Together with HUMAIN, we are building AI infrastructure for the people and companies of Saudi Arabia to realize the bold vision of the Kingdom.
Huang made the comment last week while accompanying President Trump to the Middle East.
Nvidia will be shipping 18,000 of its Blackwell semiconductor chips to Saudi Arabia to build out a 500-megawatt AI data center.
According to legendary investor Louis Navellier, this new partnership will not only open the floodgates of AI investment from the Middle East, but also potentially hand Nvidia a new kind of global influence.
Here’s Louis:
Make no mistake, this isn’t just another business deal. This is Nvidia cementing its position as the core infrastructure provider for the global AI Revolution.
Saudi Arabia wants to diversify its economy away from oil. One of the ways it can do that is by becoming a major global hub for AI.
Now, HUMAIN was founded by Saudi Arabia’s Public Investment Fund. So, the signal here is clear.
There’s a global race for AI dominance. Nvidia is in the lead, and it’s pulling further and further away from the pack. And it should stay on any smart investor’s “buy list.”
But this is just the first of two new tailwinds for Nvidia. I’ll highlight the second in a moment. First…
In yesterday’s Digest, we highlighted Nvidia as one of Louis’ picks for how to play “Liberation Day 2.0”
This is the name that Louis has given to a framework he’s been tracking for months. This framework includes:
- Potential tax cuts – enabled by tariff revenues
- Tech liberation – created by a reversal of regulatory chokepoints
- Energy liberation – created by executive orders that remove red tape on new mining and drilling projects.
Louis believes these macro tailwinds are coming together today to drive a market surge for select stocks like Nvidia, which is a direct beneficiary of “Tech liberation.”
Next Wednesday at 1 p.m. Eastern, Louis is hosting his Liberation Day 2.0 Summit that dives into more details on this framework, as well as how to position your portfolio to profit from it.
In Monday’s Digest, I’m handing the Digest over to Louis where he’ll tell you the name of one such stock. And at next Wednesday’s Summit, he’ll give away three others.
Returning to Nvidia, here’s Louis with the second recent tailwind for the chip giant:
According to recent reports, Nvidia is in advanced talks to invest in PsiQuantum, a startup working on building commercially viable quantum computers.
This would mark a major investment for Nvidia in the quantum computing space.
Why does this matter?
Quantum computing represents the next frontier beyond AI. While today’s AI runs on Nvidia’s GPUs, tomorrow’s computing challenges may require quantum computers.
Nvidia won’t be the only company benefiting from the “tech liberation” component of Louis’ three-pronged framework. And beyond tech, we have opportunities related to the tax cuts and energy liberation Louis referenced earlier.
You’ll get all those details next Wednesday at 1:00 p.m. Eastern. To register for the event, just click here.
We’ll keep you updated on all these stories here in the Digest.
Have a good evening,
Jeff Remsburg
