🌎 Pressing Pause

Good morning. It’s National Pet Day, so make sure to give your furry friend a nice, long belly rub. Today, we’ll go over Trump’s pause on tariffs, the “new king of all media,” a tragic roof collapse, and the world’s smallest pacemaker.

Sit back, relax, and enjoy today’s edition.

— Chase Goepfert, Founder

Trump pauses tariffs for everyone… except China

The pause marked a wild reversal, spurring markets. On Wednesday, President Trump announced a 90-day pause on most reciprical tariffs, excluding China, pushing markets to unprecedented rallies.

The announcement was a huge relief for many, as fears of a prolonged trade war (and possible recession) mounted. However, Trump didn’t get rid of them completely, as baseline tariffs remained at 10%.

Tariff chicken

While importers and investors popped some champagne, China announced sweeping retaliatory tariffs of 84% on American imports in response to the Trump administration’s 104% tariff on Chinese imports.

• During Trump’s declaration of the 90-day pause, he also increased tariffs on China to 125%.

The new hike marks a further escalation in the trade war between the US and China as both countries refuse to back down. The tariffs will have widespread economic consequences, forcing businesses to reroute their production.

• Many retailers, including Amazon, have already canceled orders with Chinese suppliers to try and keep prices from rising.

A saving grace: Vietnam, Indonesia, and Cambodia all agreed to remove import barriers with the US, giving giant merchants like Nike $NKE ( ▲ 0.4% ) a chance to shift production out of China.

Market madness

Following last week's announcement of additional tariffs on over 75 countries, the S&P 500 had fallen about 20% from its most recent peak, while the value of all US-listed stocks had fallen by $7.7 trillion.

After the pause, the market did a complete reversal:

• The Nasdaq recorded its biggest one-day surge since January 2001 and its second-best day ever, skyrocketing 12.16%.

• The S&P 500 skyrocketed nearly 10%, notching its biggest one-day gain since 2008 and its third biggest since World War II.

• The Dow spiked 7.87%, its biggest percentage gain in five years.

Overall, around 30 billion shares were exchanged, making it the highest volume day on Wall Street in history.

However, the historic rally didn’t last forever: Despite record gains the day before, stocks fell yesterday, with the S&P closing down 3.46%, the Nasdaq falling 4.31%, and the Dow dropping 2.5%.

Why the drop? Analysts suggest that investors are concerned Trump's hardline stance on China could dampen economic activity, despite the fact that the pause on reciprocal tariffs has provided significant relief for many.

YouTube has been crowned the “new king of all media”

Doesn’t matter; I’m still not paying for premium. YouTube could be worth over $550 billion by the end of the year, surpassing Disney as the world’s largest and most influential media company, an influential Wall Street firm said last week.

The new king of media

Two months ago, YouTube celebrated its 20th anniversary, marking its rise from a platform that helped introduce video streaming into the world’s most watched video platform, without exception.

• With $54.2 billion in revenue in 2024, YouTube was already the second-largest media company, behind only Disney.

• In February, YouTube was the most watched content source in the US for the second time this year, according to analytics firm Neilsen.

YouTube has far outpaced traditional TV giants like Fox Corp. and Paramount Global, even attracting more viewers than the world’s leading streaming service, Netflix. Even now, the Google-owned platform $GOOGL ( ▼ 0.28% ) isn’t stopping anytime soon.

Hungry for more

The video sharing behemoth has been crowned the “new king of all media,” according to Wall Street firm MoffettNathanson. What’s more, YouTube is in a position to expand its empire to even greater heights:

• MoffettNathanson analyst Michael Nathanson said the platform is not only “the leader in engagement but revenue as well,” and will take Disney’s #1 spot soon enough.

• Not to mention, the video giant is still “significantly under-monetized” when taking its engagement and reach into account.

It’s still growing: YouTube gained over 100 million subscribers to its YouTube Music and Premium services, a gain of 25%, while its global ad revenue was also up 15% last year. Despite this, the platform still has a “substatial runway for further growth,” Nathanson said.

Nightclub roof collapse kills over 200 people in Dominican Republic

The tragedy has local authorities scrambling to find those still under the rubble. A roof collapse at a popular nightclub in Santo Domingo has killed at least 221 people, including two former MLB players and a local politician, as of Thursday evening.

Tragic incident

The collapse happened as musician Ruby Peréz—known for playing merengue, the Dominican Republic's signature genre—performed for a crowd of roughly 500 people around midnight. Sadly, Peréz and his saxophonist both passed.

• Among the casualties were two former MLB players, Octavio Dotel and Tony Blanco.

• Provincial governor Nelsy Cruz, the sister of former MLB player Nelson Cruz, also died in the incident.

How did it happen? Authorities say the cause of the massive collapse, which occurred early Tuesday at the country’s famous Jet Set nightclub, is unclear (see aftermath). It is also unknown when the last time the nightclub was inspected for safety hazards.

Rescue efforts have paused as rescuers move to a recovery stage, focused on retrieving bodies from the rubble.

• Through Wednesday evening, efforts were focused on pulling survivors from the debris as giant cranes took out pieces of the destroyed roof (see photos).

Looking forward: An in-depth government investigation is expected to go underway as families plead for officials to release any kind of information regarding the tragic incident.

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Scientists developed the world’s smallest pacemaker

Who would’ve thought a pacemaker could be so cute? Scientists at Northwestern University created the smallest pacemaker in the world, which has the potential to transform heart surgery by providing a less invasive way to regulate our body's engine.

Tiny device, massive implications

Pacemakers are meant to help individuals with irregular heartbeats by using small electric shocks to help the vital organ beat normally (see here). However, the surgery required for the device, during removal or insertion, can bring possible risks.

The new device is so tiny—its smaller than a grain of rice—that it can fit inside the needle of a syringe, making its application minimally invasive and much safer than the alternative.

• While the device can be used for hearts of all sizes, it is designed mainly for newborns with congenital heart conditions.

• According to the study lead, John A. Rogers, the need for such a small device is “critical” for newborn patients.

How does it work? The tiny pacemaker is turned on using infrared light pulses from a device worn by the patient (like a necklace) and dissolves after it isn't needed anymore.

• The device runs using a galvanic cell, a type of battery that transforms chemical energy into electrical energy using fluids found in the body.

It could be groundbreaking: While the invention would be revolutionary for newborns with heart defects, it could also open up possible uses in bioelectric medicine, like pain relief and wound healing.

Tariff loophole closure could strangle Shein and Temu

Finally, your Temu-addicted friend will stop getting 15 packages a day (you know who you are). Starting May 2nd, the loophole that allowed Chinese retailers to send packages straight to US consumers without paying tax will end, forcing popular e-commerce giants like Shein and Temu to adapt.

What is the loophole?

The often-discussed de minimis exemption (see overview) has let goods that are less than $800 enter the US tariff-free on the condition that they are delivered directly to the customer.

Essentially, that meant retailers who specialize in selling cheap goods to American consumers (looking at you, Shein and Temu) could avoid paying tariffs.

• However, shipments from China and Hong Kong will no longer be eligible for this benefit starting May 2nd.

According to US officials, those shipments will now be “subject to a duty rate of either 30% of their value or $25 per item,” which will double to $50 an item once June rolls around.

Tariff trouble

In February, Trump issued an executive order to end the de minimis exemption, though it was later reversed due to “a pileup of packages” amassing at the border.

• Trump reissued the order earlier this month, with the White House stating that “adequate systems are in place” to close the loophole.

What does this mean for you? Since Chinese retailers like Shein and Temu will have to pay the tariff they were dodging, prices are likely to increase for Chinese goods.

That being said, they might have found another loophole: In the last year, Shein and Temu opened warehouses in the US and have been working with more American merchants, which might limit the impact of the loophole closing.

FAST FACTS
Catch up on this week’s weird news

Mystery Monster: A robot submarine named Boaty McBoatFace discovered a 55-year-old camera meant to capture a picture of the Loch Ness Monster. Scientists developed the photos but, unfortunately, didn't find any proof of the mythical creature.

Nuclear Negotiation: Tomorrow, the United States will have its first direct nuclear discussions with Iran since 2015, according to President Trump.

Girl Gang: In Huizhou, China, 31 men claim that their "girlfriends" conned them into purchasing apartments, only to discover that the scheme was planned by a gang of fifteen women who all worked for the same real estate company.

Robot Roomate: Samsung’s Ballie robot, which can manage smart home devices, greet guests, set reminders, offer outfit and health tips, and more, will be released this summer.

Festival Features: The Cannes Film Festival, which will take place in France starting May 13, has debuted its official full lineup of features. Check out what’s premiering here.

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