US Threatens 100% Tariffs on Russia, Meta Invests $5GW in AI

The global financial community is closely monitoring several key developments. The United States President has threatened to impose a 100% secondary tariff on Russia if it does not cease its hostile actions against Ukraine within 50 days. This threat comes as part of a broader strategy to pressure Russia into a ceasefire agreement. The President also pledged to provide additional military aid to Kyiv. The secondary tariffs, which would be imposed on countries trading with Russia, are seen as a significant escalation in economic sanctions.

Despite the threat of tariffs, the President has expressed openness to further trade negotiations with the European Union. He acknowledged that the EU is seeking a different type of agreement and that negotiations are ongoing. The EU, for its part, has warned that it may take retaliatory measures if necessary, while also pushing for dialogue with the U.S. and other affected countries.

In the tech sector, Meta's CEO announced the construction of a new 5GW artificial intelligence data center named Hyperion. This move is part of Meta's strategy to stay competitive in the AI race against rivals like OpenAI and Google. The data center is expected to provide significant computational power for Meta's AI research and development efforts. This investment underscores Meta's commitment to advancing AI technology and its potential applications.

The economic landscape is also under scrutiny as inflation data is set to be released. Economists have long warned that tariffs could drive up inflation in the U.S. The upcoming Consumer Price Index (CPI) report will test this hypothesis. If the inflation rate remains high, it could further complicate the Federal Reserve's monetary policy, which has been criticized for not lowering interest rates despite the President's repeated calls for action. The Fed has defended its stance, citing the potential impact of tariffs on inflation, but this effect has yet to materialize. If the inflation data continues to be moderate, the President is likely to express dissatisfaction with the Fed's policies once again.