Temu pulls back, China targets Rare Earths, and consumers rush to beat Trump’s tariff clock

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Dear Money Master,

This week, markets are feeling the sting of geopolitics. 📉 As President Trump escalates tariffs on Chinese goods, some as high as 245%. China is ditching the tit-for-tat playbook. Instead, it’s zeroing in on U.S. services, rare earths, and even Boeing, intensifying fears of deeper economic decoupling. ✈️💼

Meanwhile, Temu has pulled back U.S. advertising, AMD faces $800M in chip export losses, and American consumers are racing to beat the price hikes. Retail sales surged 1.4% in March, led by a spike in auto purchases, while Netflix and AmEx surprised Wall Street with strong earnings. 🚗💳🎬

In today’s Deep Dive, we explore China’s shift from tariff retaliation to strategic, surgical strikes targeting industries with symbolic and economic weight. From education and entertainment to minerals and markets, this new phase of the trade war could redefine global business as we know it. 🌐⚔️

📰 Your Daily Financial Digest - April 18th, 2025

🌍 Economics:

1. Japan’s export growth slows as U.S. tariffs loom 🚢
   March exports rose 3.9% YoY, below forecasts. Car shipments to the U.S. may take a hit from new 25% import tariffs starting this month. Read More

2. ECB cuts interest rates again amid tariff-driven slowdown 📉
   The European Central Bank slashed its key rate by 25bps to 2.25%, citing global trade tensions and a deteriorating eurozone growth outlook. Read More

3. U.S. retail sales surge as shoppers rush to beat tariffs 🚗
   March retail sales jumped 1.4%, led by a 5.3% spike in car purchases. Consumers raced to buy before Trump’s 25% auto tariffs kicked in. Read More

💻 Technology:

1. Temu slashes U.S. ad spend as Trump tariffs bite 📉
   App downloads dropped 62% as new 145% tariffs and the end of de minimis rules force Temu to cut marketing and raise prices. Read More

2. Lyft enters Europe with $200M FreeNow acquisition 🚖
   The ride-hailing giant will expand into 150+ cities, tapping into new mobility markets like e-scooters and bikes through FreeNow’s multi-modal platform. Read More

3. AMD hit by $800M charge amid U.S. chip export crackdown to China 💥
   New license restrictions on MI308 chips could impact inventory and revenue, as AMD awaits U.S. export approvals. Read More

💹Earnings:

1. American Express beats Q1 estimates as consumer spending holds strong 💳
   EPS hit $3.64 vs. $3.47 expected; revenue climbed 7% YoY to $16.97B. AXP reaffirmed 2025 guidance, though shares dipped after initial spike. Read More

2. Netflix smashes Q1 expectations, powered by price hikes and ads 🎬
   Revenue jumped 12% to $10.54B and EPS surged to $6.61. Netflix now forecasts ad revenue will double in 2025, targeting $1 trillion market cap by 2030. Read More

3. TSMC profit soars 60% in Q1, fueled by booming AI chip demand 🔌
   Revenue rose to NT$839.25B, driven by strong 3nm and 5nm chip sales. Despite tariff threats, TSMC stays bullish on 2025 growth. Read More

🔍 Deep Dive: The New Front in the U.S.-China Trade War — Services & Sanctions 🌍💰

The U.S.-China trade conflict has entered a new phase — and it’s no longer just about tariffs on goods. As President Trump hikes tariffs on Chinese imports up to 245%, Beijing is hitting back not with more duties, but with non-tariff weapons targeting U.S. services and corporations.

China’s new playbook:
After U.S. tariffs hit up to 245%, China imposed duties of up to 125%, then pivoted. It’s now using non-tariff measures, including:

• Export controls on rare-earth minerals, vital for semiconductors and defense.

• Antitrust probes into U.S. firms like Google and DuPont.

• Halting Boeing jet deliveries, squeezing America’s top exporter.

Targeting U.S. services:
China imported $55B in U.S. services in 2024, generating a $32B U.S. surplus.

Rather than retaliate tit-for-tat, China is squeezing where it hurts politically: Boeing, Google, and even Hollywood. It has cut off aircraft orders, launched antitrust probes, and reduced U.S. film imports.

More critically, China is curbing its $55 billion in annual service imports from the U.S., threatening sectors like tourism and education. In 2024 alone, 270,000 Chinese students contributed over 70% of education-related spending in this trade category.

China’s export controls on rare earths, essential for semiconductors and missile systems further squeeze U.S. tech. Analysts warn of a full-scale decoupling that could extend beyond supply chains into people, knowledge, and trust — shifting from economic rivalry to systemic separation. 🌐⚔️

Big Tech Has Spent Billions Acquiring AI Smart Home Startups

The pattern is clear: when innovative companies successfully integrate AI into everyday products, tech giants pay billions to acquire them.

Google paid $3.2B for Nest.
Amazon spent $1.2B on Ring.
Generac spent $770M on EcoBee.

Now, a new AI-powered smart home company is following their exact path to acquisition—but is still available to everyday investors at just $1.90 per share.

With proprietary technology that connects window coverings to all major AI ecosystems, this startup has achieved what big tech wants most: seamless AI integration into daily home life.

Over 10 patents, 200% year-over-year growth, and a forecast to 5x revenue this year — this company is moving fast to seize the smart home opportunity.

The acquisition pattern is predictable. The opportunity to get in before it happens is not.

INVEST BEFORE BIG TECH MAKES THEIR MOVE

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To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.