U.S. President Donald Trump repeated his plans for tariffs against America’s biggest trading partners during an address to Congress on Tuesday evening, while also criticizing government subsidies for chipmakers.
Trump calls for end to CHIPS Act
On the CHIPS act, Trump called the legislation a “horrible, horrible thing,” criticizing the Biden administration for allowing billions of dollars to be spent on what “doesn’t mean a thing.”
The CHIPS Act was signed by the Biden administration to boost U.S. chip manufacturing, and included nearly $100 billion in government subsidies to build chips in the U.S.
Major beneficiaries of the act include Intel (NASDAQ:INTC), TSMC (NYSE:TSM), Samsung Electronics (KS:005930) and Texas Instruments (NASDAQ:TXN). U.S. chip production has come into renewed focus in recent years with the advent of artificial intelligence, especially as the the U.S. attempts to cut China off from access to advanced chip technology.
Trump touts tax cuts
In his first address to a joint session of Congress since taking office in January, Trump outlined what he touted as major achievements for his administration over the past six weeks, which included stricter border controls, measures to increase domestic energy production, and cuts to government spending.
Trump reiterated his plans for sweeping tax cuts, calling on the Democrats to also vote in favor of a proposed tax cut bill.
But Trump also claimed he will soon balance the federal budget, despite a tax cut plan endorsed by him set to add trillions to the U.S. budget deficit.
“We want to cut taxes on domestic production and all manufacturing,” Trump said, claiming that the tax cuts will be retroactive to January 20, 2025.
Bitcoin rebounds amid dip buying
Bitcoin rose on Wednesday as an extended rout in crypto prices drew in some bargain buying, while hopes of a scaling down in U.S. President Donald Trump’s trade tariffs also aided risk appetite.
The world’s largest crypto saw wild swings this week as Trump’s promises of a crypto reserve sparked a sharp rebound from last week’s losses. But this rebound proved to be short-lived as Trump gave few cues on his crypto plans.
The U.S. President also made no mention of crypto during an address in Congress on Tuesday evening.
Bitcoin rose 3.4% to $87,103.8 by 00:51 ET (05:51 GMT).
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