Tariffs gain attention as AI enthusiasm wanes

After weeks of intense focus on whether an AI bubble existed in the market, a recurring feature of 2025 has surfaced: tariffs.

In the U.S. on Friday, tech stocks recovered slightly after the Nasdaq hit its lowest in nearly three weeks, perhaps a sign that the AI-driven volatility may be nearing an end.

But just as AI retreats from the spotlight, tariffs enter the stage like the next act of a Shakespeare play.

The Trump administration on Friday reached an agreement with Switzerland that would reduce Swiss export tariffs from 39% to 15% in exchange for $200 billion in investments in the United States by the end of 2028.

Domestically, President Trump has begun lifting tariffs on coffee, fruit, and some beef products, acknowledging that coffee prices in particular are “a little high.”

These reductions mark a sharp reversal in the stance of the U.S. president and his officials that tariffs do not raise prices.

In some ways, the president of the United States may be trying to change the laws of politics with sweeping tariffs, but even he can’t change the laws of economics.

Epstein files released. US President Donald Trump has called on Republicans in Congress to vote to release files on convicted sex offender Jeffrey Epstein, a sharp reversal from previous resistance within his inner circle.

Alibaba is reportedly supporting the Chinese military. According to a White House memo, Alibaba is helping the Chinese military target the United States, the Financial Times reported on Friday. Alibaba said in a statement to CNBC about the FT report that “the claims and insinuations in the article are completely false.”

Japan’s GDP will fall. Japan’s economy contracted at an annualized rate of 1.8% in the third quarter, lower than expected, with growth in private consumption and government consumption limiting the decline. GDP for the three months to September decreased by 0.4% compared to the previous quarter, the first contraction in six quarters.

Nasdaq recovered. Tech stock indexes rallied Friday, a day after investors bought up shares in major technology stocks, a day after the group led Wall Street to its worst day in more than a month. Asia-Pacific markets were mixed on Monday as investors assessed rising tensions between Japan and China.

(PRO) AI and EM in the next 10 years. Artificial intelligence and emerging markets will define the next decade, according to Goldman Sachs’ 10-year investment outlook report.