Policy

president-trump-says-intel’s-new-ceo-“must-resign-immediately”

President Trump says Intel’s new CEO “must resign immediately”

Intel and the White House did not immediately respond to a request for comment on Trump’s post. Intel shares dropped 3 percent in pre-market trading in New York.

Tan was appointed as Intel CEO in March after the Silicon Valley company’s board ousted his predecessor, Pat Gelsinger, in December.

Intel is the only US-headquartered company capable of producing advanced semiconductors, though it has so far largely missed out on the current boom for artificial intelligence chips. It has been awarded billions of dollars in US government subsidies and loans to support its chip manufacturing business, which has fallen far behind its rival Taiwan Semiconductor Manufacturing Company.

However, amid a radical cost-cutting program, Tan warned last month that Intel might be forced to abandon development of its next-generation manufacturing technology if it were unable to secure a “significant external customer.” Such a move would hand a virtual monopoly of leading-edge chipmaking to TSMC.

“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote in Tuesday’s letter to Intel’s board chair, Frank Yeary. “Mr Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”

Additional reporting by Demetri Sevastopulo.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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tornado-cash-sold-crypto-“privacy”;-the-us-saw-“money-laundering.”

Tornado Cash sold crypto “privacy”; the US saw “money laundering.”

Image of Storm's instant messages.

Some of Storm’s instant messages that his defense team wanted to use at trial.

But Storm fought back. In a trial in Manhattan over the past few weeks, his defense team has introduced text messages showing that Storm was glad to have the North Koreans identified. As he put it, “I’m glad those f*ckers are detected.” They contend that Storm tried to help the crypto exchange recover its money by pointing them to blockchain analysis tools; he could not do more because it simply wasn’t possible with the Tornado system, which was built for anonymity. As for regulatory compliance, Storm’s defense introduced chats in which he talked about making sure Tornado Cash was “legal” so that “people wouldn’t think that it’s some kind of damned mixer. So that the reputation would be clean.”

(Storm apparently does not see Tornado as a “mixer” because of its technical infrastructure and the use of smart contracts, which create a “non-custodial” system in which Tornado itself does not technically accept or control the money—also, because Tornado doesn’t advertise on the dark web, as did the Helix mixer, which was shut down a few years ago.)

Storm’s venture capitalist backers also assured him at one point that, in their view, Tornado was operating legally.

Mixed verdict

The trial wrapped up last week, and the jury in Storm’s case has deliberated for multiple days, struggling to reach a consensus on the main charges. Today, they announced that they were deadlocked on the two largest—money laundering and violating sanctions on North Korea. (Prosecutors will decide later if they plan to re-try Storm on those charges.)

But they did find Storm guilty on a lesser charge of operating an unlicensed money transmitting business. He will be sentenced soon and is out on a $2 million bail until then.

The government continues to pressure crypto mixers. The team behind the mixer Samourai Wallet was arrested in 2024 and last week agreed to plead guilty to some of the charges in their case.

But the Tornado Cash saga shows that, at least when the services are built and run and advertised in a certain way, juries are not always convinced about maximal government claims.

Tornado Cash sold crypto “privacy”; the US saw “money laundering.” Read More »

us-executive-branch-agencies-will-use-chatgpt-enterprise-for-just-$1-per-agency

US executive branch agencies will use ChatGPT Enterprise for just $1 per agency

OpenAI announced an agreement to supply more than 2 million workers for the US federal executive branch access to ChatGPT and related tools at practically no cost: just $1 per agency for one year.

The deal was announced just one day after the US General Services Administration (GSA) signed a blanket deal to allow OpenAI and rivals like Google and Anthropic to supply tools to federal workers.

The workers will have access to ChatGPT Enterprise, a type of account that includes access to frontier models and cutting-edge features with relatively high token limits, alongside a more robust commitment to data privacy than general consumers of ChatGPT get. ChatGPT Enterprise has been trialed over the past several months at several corporations and other types of large organizations.

The workers will also have unlimited access to advanced features like Deep Research and Advanced Voice Mode for a 60-day period. After the one-year trial period, the agencies are under no obligation to renew.

A limited deployment of ChatGPT for federal workers was already done via a pilot program with the US Department of Defense earlier this summer.

In a blog post, OpenAI heralded this announcement as an act of public service:

This effort delivers on a core pillar of the Trump Administration’s AI Action Plan by making powerful AI tools available across the federal government so that workers can spend less time on red tape and paperwork, and more time doing what they came to public service to do: serve the American people.

The AI Action Plan aims to expand AI-focused data centers in the United States while bringing AI tools to federal workers, ostensibly to improve efficiency.

US executive branch agencies will use ChatGPT Enterprise for just $1 per agency Read More »

states-take-the-lead-in-ai-regulation-as-federal-government-steers-clear

States take the lead in AI regulation as federal government steers clear

AI in health care

In the first half of 2025, 34 states introduced over 250 AI-related health bills. The bills generally fall into four categories: disclosure requirements, consumer protection, insurers’ use of AI, and clinicians’ use of AI.

Bills about transparency define requirements for information that AI system developers and organizations that deploy the systems disclose.

Consumer protection bills aim to keep AI systems from unfairly discriminating against some people and ensure that users of the systems have a way to contest decisions made using the technology.

Bills covering insurers provide oversight of the payers’ use of AI to make decisions about health care approvals and payments. And bills about clinical uses of AI regulate use of the technology in diagnosing and treating patients.

Facial recognition and surveillance

In the US, a long-standing legal doctrine that applies to privacy protection issues, including facial surveillance, is to protect individual autonomy against interference from the government. In this context, facial recognition technologies pose significant privacy challenges as well as risks from potential biases.

Facial recognition software, commonly used in predictive policing and national security, has exhibited biases against people of color and consequently is often considered a threat to civil liberties. A pathbreaking study by computer scientists Joy Buolamwini and Timnit Gebru found that facial recognition software poses significant challenges for Black people and other historically disadvantaged minorities. Facial recognition software was less likely to correctly identify darker faces.

Bias also creeps into the data used to train these algorithms, for example when the composition of teams that guide the development of such facial recognition software lack diversity.

By the end of 2024, 15 states in the US had enacted laws to limit the potential harms from facial recognition. Some elements of state-level regulations are requirements on vendors to publish bias test reports and data management practices, as well as the need for human review in the use of these technologies.

States take the lead in AI regulation as federal government steers clear Read More »

trump-admin-warns-states:-don’t-try-to-lower-broadband-prices

Trump admin warns states: Don’t try to lower broadband prices

The Trump administration is telling states they will be shut out of a $42 billion broadband deployment fund if they set the rates that Internet service providers receiving subsidies are allowed to charge people with low incomes.

The latest version of the National Telecommunications and Information Administration (NTIA) FAQ on the grant program, released today, is a challenge to states considering laws that would force Internet providers to offer cheap plans to people who meet income eligibility guidelines. One state already has such a law: New York requires ISPs with over 20,000 customers in the state to offer $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds.

Other states have been considering similar laws and were initially emboldened by New York winning a yearslong court battle against ISPs that tried to invalidate the state law. But states may now be dissuaded by the Trump administration’s stance against price mandates being applied to the grant program.

As we wrote in a July 22 article, California Assemblymember Tasha Boerner told Ars that she pulled a bill requiring $15 broadband plans after NTIA officials informed her that it could jeopardize the state’s access to broadband grants. The NTIA’s new FAQ makes the agency’s stance against state laws even clearer.

ISPs get to choose price of low-cost plan

The NTIA rules concern the Broadband Equity, Access, and Deployment (BEAD) program, which is distributing $42.45 billion to states for grants that would be given to ISPs that expand broadband access. Although the US law that created BEAD requires Internet providers receiving federal funds to offer at least one “low-cost broadband service option for eligible subscribers,” it also says the NTIA may not “regulate the rates charged for broadband service.”

Trump admin warns states: Don’t try to lower broadband prices Read More »

analysis:-the-trump-administration’s-assault-on-climate-action

Analysis: The Trump administration’s assault on climate action


Official actions don’t challenge science, while unofficial docs muddy the waters.

Last week, the Environmental Protection Agency made lots of headlines by rejecting the document that establishes its ability to regulate the greenhouse gases that are warming our climate. While the legal assault on regulations grabbed most of the attention, it was paired with two other actions that targeted other aspects of climate change: the science underlying our current understanding of the dramatic warming the Earth is experiencing, and the renewable energy that represents our best chance of limiting this warming.

Collectively, these actions illuminate the administration’s strategy for dealing with a problem that it would prefer to believe doesn’t exist, despite our extensive documentation of its reality. They also show how the administration is tailoring its approach to different audiences, including the audience of one who is demanding inaction.

When in doubt, make something up

The simplest thing to understand is an action by the Department of the Interior, which handles permitting for energy projects on federal land—including wind and solar, both onshore and off. That has placed the Interior in an awkward position. Wind and solar are now generally the cheapest ways to generate electricity and are currently in the process of a spectacular boom, with solar now accounting for over 80 percent of the newly installed capacity in the US.

Yet, when Trump issued an executive order declaring an energy emergency, wind and solar were notably excluded as potential solutions. Language from Trump and other administration officials has also made it clear that renewable energy is viewed as an impediment to the administration’s pro-fossil fuel agenda.

But shutting down federal permitting for renewable energy with little more than “we don’t like it” as justification could run afoul of rules that forbid government decisions from being “arbitrary and capricious.” This may explain why the government gave up on its attempts to block the ongoing construction of an offshore wind farm in New York waters.

On Friday, the Interior announced that it had settled on a less arbitrary justification for blocking renewable energy on public land: energy density. Given a metric of land use per megawatt, wind and solar are less efficient than nuclear plants we can’t manage to build on time or budget, and therefore “environmentally damaging” and an inefficient use of federal land, according to the new logic. “The Department will now consider proposed energy project’s capacity density when assessing the project’s potential energy benefits to the nation and impacts to the environment and wildlife,” Interior declared.

This is only marginally more reasonable than Interior Secretary Doug Burgum’s apparent inability to recognize that solar power can be stored in batteries. But it has three features that will be recurring themes. There’s at least a token attempt to provide a justification that might survive the inevitable lawsuits, while at the same time providing fodder for the culture war that many in the administration demand. And it avoids directly attacking the science that initially motivated the push toward renewables.

Energy vs. the climate

That’s not to say that climate change isn’t in for attack. It’s just that the attacks are being strategically separated from the decisions that might produce a lawsuit. Last week, the burden of taking on extremely well-understood and supported science fell to the Department of Energy, which released a report on climate “science” to coincide with the EPA’s decision to give up on attempts to regulate greenhouse gases.

For those who have followed public debates over climate change, looking at the author list—John Christy, Judith Curry, Steven Koonin, Ross McKitrick, and Roy Spencer—will give you a very clear picture of what to expect. Spencer is a creationist, raising questions about his ability to evaluate any science free from his personal biases. (He has also said, “My job has helped save our economy from the economic ravages of out-of-control environmental extremism,” so it’s not just biology where he’s got these issues.) McKitrick is an economist who engaged in a multi-year attempt to raise doubt about the prominent “hockey stick” reconstruction of past climates, even as scientists were replicating the results. Etc.

The report is a master class in arbitrary and capricious decision-making applied to science. Sometimes the authors rely on the peer-reviewed literature. Other times they perform their own analysis for this document, in some cases coming up with almost comically random metrics for data. (Example: “We examine occurrences of 5-day deluges as follows. Taking the Pacific coast as an example, a 130-year span contains 26 5-year intervals. At each location we computed the 5-day precipitation totals throughout the year and selected the 26 highest values across the sample.” Why five days? Five-year intervals? Who knows.)

This is especially striking in a few cases where the authors choose references that were published a few years ago, and thus neatly avoid the dramatic temperature records that have been set over the past couple of years. Similarly, they sometimes use regional measures and sometimes use global ones. They demand long-term data in some contexts, while getting excited about two years of coral growth in the Great Barrier Reef. The authors highlight the fact that US tide gauges don’t show any indication of an acceleration in the rate of sea level rise while ignoring the fact that global satellite measures clearly do.

That’s not to say that there aren’t other problems. There’s some blatant misinformation, like claims that urbanization could be distorting the warming, which has already been tested extensively. (Notably, warming is most intense in the sparsely populated Arctic.) There’s also some creative use of language, like referring to the ocean acidification caused by CO2 as “neutralizing ocean alkalinity.”

But the biggest bit of misinformation comes in the introduction, where the secretary of energy, Chris Wright, said of the authors, “I chose them for their rigor, honesty, and willingness to elevate the debate.” There is no reason to choose this group of marginal contrarians except the knowledge that they’d produce a report like this, thus providing a justification for those in the administration who want to believe it’s all a scam.

No science needed

The critical feature of the Department of Energy report is that it contains no policy actions; it’s purely about trying to undercut well-understood climate science. This means the questionable analyses in the report shouldn’t ever end up being tested in court.

That’s in contrast to the decision to withdraw the EPA’s endangerment finding regarding greenhouse gases. There’s quite an extensive history to the endangerment finding, but briefly, it’s the product of a Supreme Court decision (Massachusetts v. EPA), which compelled the EPA to evaluate whether greenhouse gases posed a threat to the US population as defined in the Clean Air Act. Both the Bush and Obama EPAs did so, thus enabling the regulation of greenhouse gases, including carbon dioxide.

Despite the claims in the Department of Energy report, there is comprehensive evidence that greenhouse gases are causing problems in the US, ranging from extreme weather to sea level rise. So while the EPA mentions the Department of Energy’s work a number of times, the actual action being taken skips over the science and focuses on legal issues. In doing so, it creates a false history where the endangerment finding had no legal foundation.

To re-recap, the Supreme Court determined that this evaluation was required by the Clean Air Act. George W. Bush’s administration performed the analysis and reached the exact same conclusion as the Obama administration (though the former chose to ignore those conclusions). Yet Trump’s EPA is calling the endangerment finding “an unprecedented move” by the Obama administration that involved “mental leaps” and “ignored Congress’ clear intent.” And the EPA presents the findings as strategic, “the only way the Obama-Biden Administration could access EPA’s authority to regulate,” rather than compelled by scientific evidence.

Fundamentally, it’s an ahistorical presentation; the EPA is counting on nobody remembering what actually happened.

The announcement doesn’t get much better when it comes to the future. The only immediate change will be an end to any attempts to regulate carbon emissions from motor vehicles, since regulations for power plants had been on hold due to court challenges. Yet somehow, the EPA’s statement claims that this absence of regulation imposed costs on people. “The Endangerment Finding has also played a significant role in EPA’s justification of regulations of other sources beyond cars and trucks, resulting in additional costly burdens on American families and businesses,” it said.

We’re still endangered

Overall, the announcements made last week provide a clear picture of how the administration intends to avoid addressing climate change and cripple the responses started by previous administrations. Outside of the policy arena, it will question the science and use partisan misinformation to rally its supporters for the fight. But it recognizes that these approaches aren’t flying when it comes to the courts.

So it will separately pursue a legal approach that seeks to undercut the ability of anyone, including private businesses, to address climate change, crafting “reasons” for its decisions in a way that might survive legal challenge—because these actions are almost certain to be challenged in court. And that may be the ultimate goal. The current court has shown a near-complete disinterest in respecting precedent and has issued a string of decisions that severely limit the EPA. It’s quite possible that the court will simply throw out the prior decision that compelled the government to issue an endangerment finding in the first place.

If that’s left in place, then any ensuing administrations can simply issue a new endangerment finding. If anything, the effects of climate change on the US population have become more obvious, and the scientific understanding of human-driven warming has solidified since the Bush administration first acknowledged them.

Photo of John Timmer

John is Ars Technica’s science editor. He has a Bachelor of Arts in Biochemistry from Columbia University, and a Ph.D. in Molecular and Cell Biology from the University of California, Berkeley. When physically separated from his keyboard, he tends to seek out a bicycle, or a scenic location for communing with his hiking boots.

Analysis: The Trump administration’s assault on climate action Read More »

rip-corporation-for-public-broadcasting:-1967–2026

RIP Corporation for Public Broadcasting: 1967–2026

Despite the protests of millions of Americans, the Corporation for Public Broadcasting (CPB) announced it will be winding down its operations after the White House deemed NPR and PBS a “grift” and pushed for a Senate vote that eliminated its entire budget.

The vote rescinded $1.1 billion that Congress had allocated to CPB to fund public broadcasting for fiscal years 2026 and 2027. In a press release, CPB explained that the cuts “excluded funding for CPB for the first time in more than five decades.” CPB president and CEO Patricia Harrison said the corporation had no choice but to prepare to shut down.

“Despite the extraordinary efforts of millions of Americans who called, wrote, and petitioned Congress to preserve federal funding for CPB, we now face the difficult reality of closing our operations,” Harrison said.

Concerned Americans also rushed to donate to NPR and PBS stations to confront the funding cuts, The New York Times reported. But those donations, estimated at around $20 million, ultimately amounted to too little, too late to cover the funding that CPB lost.

As CPB takes steps to close, it expects that “the majority of staff positions will conclude with the close of the fiscal year on September 30, 2025.” After that, a “small transition team” will “ensure a responsible and orderly closeout of operations” by January 2026. That team “will focus on compliance, final distributions, and resolution of long-term financial obligations, including ensuring continuity for music rights and royalties that remain essential to the public media system.”

“CPB remains committed to fulfilling its fiduciary responsibilities and supporting our partners through this transition with transparency and care,” Harrison said.

NPR mourns loss of CPB

In a statement, NPR’s president and CEO, Katherine Maher, mourned the loss of CPB, warning that it was a “vital source of funding for local stations, a champion of educational and cultural programming, and a bulwark for independent journalism.”

RIP Corporation for Public Broadcasting: 1967–2026 Read More »

delta-denies-using-ai-to-come-up-with-inflated,-personalized-prices

Delta denies using AI to come up with inflated, personalized prices

Delta scandal highlights value of transparency

According to Delta, the company has “zero tolerance for discriminatory or predatory pricing” and only feeds its AI system aggregated data “to enhance our existing fare pricing processes.”

Rather than basing fare prices on customers’ personal information, Carter clarified that “all customers have access to the same fares and offers based on objective criteria provided by the customer such as origin and destination, advance purchase, length of stay, refundability, and travel experience selected.”

The AI use can result in higher or lower prices, but not personalized fares for different customers, Carter said. Instead, Delta plans to use AI pricing to “enhance market competitiveness and drive sales, benefiting both our customers and our business.”

Factors weighed by the AI system, Carter explained, include “customer demand for seats and purchasing data at an aggregated level, competitive offers and schedules, route performance, and cost of providing the service inclusive of jet fuel.” That could potentially mean a rival’s promotion or schedule change could trigger the AI system to lower prices to stay competitive, or it might increase prices based on rising fuel costs to help increase revenue or meet business goals.

“Given the tens of millions of fares and hundreds of thousands of routes for sale at any given time, the use of new technology like AI promises to streamline the process by which we analyze existing data and the speed and scale at which we can respond to changing market dynamics,” Carter wrote.

He explained the AI system helps Delta aggregate purchasing data for specific routes and flights, adapt to new market conditions, and factor in “thousands of variables simultaneously.” AI could also eventually be used to assist with crew scheduling, improve flight availability, or help reservation specialists answer complex questions or resolve disputes.

But “to reiterate, prices are not targeted to individual consumers,” Carter emphasized.

Delta further pointed out that the company does not require customers to log in to search for tickets, which means customers can search for flights without sharing any personal information.

For AI companies paying attention to the Delta backlash, there may be a lesson about the value of transparency in Delta’s scandal. Critics noted Delta was among the first to admit it was using AI to influence pricing, but the vague explanation on the earnings call stoked confusion over how, as Delta seemed to drag its feet amid calls by groups like Consumer Watchdog for more transparency.

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chatgpt-users-shocked-to-learn-their-chats-were-in-google-search-results

ChatGPT users shocked to learn their chats were in Google search results

Faced with mounting backlash, OpenAI removed a controversial ChatGPT feature that caused some users to unintentionally allow their private—and highly personal—chats to appear in search results.

Fast Company exposed the privacy issue on Wednesday, reporting that thousands of ChatGPT conversations were found in Google search results and likely only represented a sample of chats “visible to millions.” While the indexing did not include identifying information about the ChatGPT users, some of their chats did share personal details—like highly specific descriptions of interpersonal relationships with friends and family members—perhaps making it possible to identify them, Fast Company found.

OpenAI’s chief information security officer, Dane Stuckey, explained on X that all users whose chats were exposed opted in to indexing their chats by clicking a box after choosing to share a chat.

Fast Company noted that users often share chats on WhatsApp or select the option to save a link to visit the chat later. But as Fast Company explained, users may have been misled into sharing chats due to how the text was formatted:

“When users clicked ‘Share,’ they were presented with an option to tick a box labeled ‘Make this chat discoverable.’ Beneath that, in smaller, lighter text, was a caveat explaining that the chat could then appear in search engine results.”

At first, OpenAI defended the labeling as “sufficiently clear,” Fast Company reported Thursday. But Stuckey confirmed that “ultimately,” the AI company decided that the feature “introduced too many opportunities for folks to accidentally share things they didn’t intend to.” According to Fast Company, that included chats about their drug use, sex lives, mental health, and traumatic experiences.

Carissa Veliz, an AI ethicist at the University of Oxford, told Fast Company she was “shocked” that Google was logging “these extremely sensitive conversations.”

OpenAI promises to remove Google search results

Stuckey called the feature a “short-lived experiment” that OpenAI launched “to help people discover useful conversations.” He confirmed that the decision to remove the feature also included an effort to “remove indexed content from the relevant search engine” through Friday morning.

ChatGPT users shocked to learn their chats were in Google search results Read More »

backpage-survivors-will-receive-$200m-to-cover-medical,-health-bills

Backpage survivors will receive $200M to cover medical, health bills

Survivors, or their representatives, must submit claims by February 2, 2026. To receive compensation, claims must include at least one document showing they “suffered monetary and/or behavioral health losses,” the claims form specified.

Documents can include emails, texts, screenshots, or advertisements. Claims may be further strengthened by sharing receipts from doctors’ visits, as well as medical or psychological exam results, summaries, or plans.

Medical expenses survivors can document can include any expenses paid out of pocket, including dental expenses, tattoo removals, or even future medical costs referenced in doctor’s referrals, an FAQ noted. Similarly, counseling or therapy costs can be covered, as well as treatment for substance use, alternative behavioral treatments, and future behavioral health plans recommended by a professional.

The FAQ also clarified that lost wages can be claimed, including any documentation of working overtime. Survivors only need to show approximate dates and times of abuse, since the DOJ said that it “appreciates that you may not remember exact number of hours you were trafficked during the relevant timeframe.” However, no future economic losses can be claimed, the FAQ said, and survivors will not be compensated for pain and suffering, despite the DOJ understanding that “your experience was painful and traumatic.”

Consulting the DOJ’s FAQ can help survivors assess the remission process. It noted that any “information regarding aliases, email addresses used, phone numbers, and trafficker names” can “be used to verify your eligibility.” Survivors are also asked to share any prior compensation already received from Backpage or through other lawsuits. To get answers to any additional questions, they can call the administrator in charge of dispensing claims, Epiq Global, at 1-888-859-9206 toll-free or at 1-971-316-5053 for international calls, the DOJ noted.

If you are in immediate danger or need resources because of a trafficking situation, please call 911 or the National Human Trafficking Hotline, toll-free at 1-888-373-7888.

Backpage survivors will receive $200M to cover medical, health bills Read More »

trump-suspends-trade-loophole-for-cheap-online-retailers-globally

Trump suspends trade loophole for cheap online retailers globally

But even Amazon may struggle to shift its supply chain as the de minimis exemption is eliminated for all countries. In February, the e-commerce giant “projected lower-than-expected sales and operating income for its first quarter,” which it partly attributed to “unpredictability in the economy.” A DataWeave study concluded at the end of June that “US prices for China-made goods on Amazon” were rising “faster than inflation,” Reuters reported, likely due to “cost shocks” currently “rippling through the retail supply chain.” Other non-Chinese firms likely impacted by this week’s order include eBay, Etsy, TikTok Shop, and Walmart.

Amazon did not respond to Ars’ request to comment but told Reuters last month that “it has not seen the average prices of products change up or down appreciably outside of typical fluctuations.”

Trump plans to permanently close loophole in 2027

Trump has called the de minimis exemption a “big scam,” claiming that it’s a “catastrophic loophole” used to “evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States.”

To address what Trump has deemed “national emergencies” hurting American trade and public health, he has urgently moved to suspend the loophole now and plans to permanently end it worldwide by July 1, 2027.

American travelers will still be able to “bring back up to $200 in personal items” and receive “bona fide gifts valued at $100 or less” duty-free, but a fixed tariff rate of between $80 to $200 per item will be applied to many direct-to-consumer shipments until Trump finishes negotiating trade deals with the rest of America’s key trade partners. As each deal is theoretically closed, any shipments will be taxed according to tariff rates of their country of origin. (Those negotiations are supposed to conclude by tomorrow, but so far, Trump has only struck deals with the European Union, Japan, and South Korea.)

Trump suspends trade loophole for cheap online retailers globally Read More »

china-claims-nvidia-built-backdoor-into-h20-chip-designed-for-chinese-market

China claims Nvidia built backdoor into H20 chip designed for Chinese market

The CAC did not specify which experts had found a back door in Nvidia’s products or whether any tests in China had uncovered the same results. Nvidia did not immediately respond to a request for comment.

Lawmakers in Washington have expressed concern about chip smuggling and introduced a bill that would require chipmakers such as Nvidia to embed location tracking into export-controlled hardware.

Beijing has issued informal guidance to major Chinese tech groups to increase purchases of domestic AI chips in order to reduce reliance on Nvidia and support the evolution of a rival domestic chip ecosystem.

Chinese tech giant Huawei and smaller groups including Biren and Cambricon have benefited from the push to localize chip supply chains.

Nvidia said it would take nine months from restarting manufacturing to shipping the H20 to clients. Industry insiders said there was considerable uncertainty among Chinese customers over whether they would be able to take delivery of any orders if the US reversed its decision to allow its sale.

The Trump administration has faced heavy criticism, including from security experts and former officials, who argue that the H20 sales would accelerate Chinese AI development and threaten US national security.

“There are strong factions on both sides of the Pacific that don’t like the idea of renewing H20 sales,” said Triolo. “In the US, the opposition is clear, but also in China voices are saying that it will slow transition to the alternative ecosystem.”

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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