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Brazil Denies Report of Tax on US Tech Firms Amid Trump Steel Tariffs

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Brazil’s Finance Minister, Fernando Haddad, denied reports on Monday suggesting that the country was considering imposing taxes on U.S. tech companies in response to President Donald Trump’s proposed 25% tariff on all U.S. steel imports.

The speculation arose after a report from the Brazilian newspaper Folha de S.Paulo, which claimed that the administration of President Luiz Inácio Lula da Silva was contemplating levying tariffs on major tech firms as a retaliatory measure.

Haddad quickly refuted the claims on social media, emphasizing that the information was inaccurate. He reiterated that the Brazilian government would only make official statements based on concrete decisions, not speculative announcements that could be misinterpreted or later changed.

The report had suggested that tech giants such as Amazon (AMZN.O), Meta Platforms (META.O), and Alphabet (GOOGL.O) could be targeted by such a tax. However, Haddad’s remarks clarified that no such plans were under consideration at this time.

Brazil, a significant supplier of U.S. steel imports, also serves as a key market for many large tech companies, which would have been affected by such a tax. The denial comes as Trump is set to introduce additional tariffs on steel and aluminum imports, escalating his trade policy strategy.

Thailand Seeks Semiconductor Investments Amid U.S.-China Trade War

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Thailand plans to draft a strategic plan for its semiconductor sector within 90 days as it aims to attract investment amid U.S. President Donald Trump’s renewed trade war with China. Narit Therdsteerasukdi, secretary-general of the Thailand Board of Investment (BOI), announced that the national semiconductor board will hire a consultancy to develop an industry roadmap.

Narit, who reports directly to the prime minister, is organizing investment roadshows in the United States and Japan to promote Thailand as a semiconductor manufacturing hub. The ongoing trade tensions between the U.S. and China have disrupted global semiconductor supply chains, prompting many companies to shift operations to Southeast Asia. President Trump’s recent announcement of a 10% tariff on Chinese imports signals further trade disruptions.

Thailand experienced a significant 35% rise in inbound investment applications last year, totaling a decade-high 1.14 trillion baht ($33.5 billion). Narit expects further growth this year, especially in the electronics and digital sectors.

According to a 2024 Kearney report, Thailand ranks as the second-best emerging economy for semiconductor manufacturing, trailing only India. The country is targeting 500 billion baht in new semiconductor investments by 2029, focusing on power electronics used in electric vehicles, data centers, and energy storage systems.

Major semiconductor companies with operations in Thailand include Massachusetts-based Analog Devices, Japan’s Sony and Toshiba, Germany’s Infineon, and a subsidiary of Taiwan’s Foxsemicon Integrated Technology. The BOI noted that investments in printed circuit board manufacturing—a vital component in devices like smartphones and EVs—have surged since 2023 due to the trade war.

Narit highlighted Thailand’s neutrality as a significant factor for investors choosing the country. However, competition remains fierce, especially from Malaysia, which accounts for 13% of global chip testing and packaging and is targeting over $100 billion in semiconductor investments.

Bridgewater’s Pure Alpha Fund Surges 8.2% in January Amid Market Volatility

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Bridgewater Associates’ flagship hedge fund, Pure Alpha, saw a notable gain of 8.2% in January, defying the broader market’s volatility, which included a downturn in AI-related stocks and geopolitical uncertainties. While the exact drivers behind the fund’s performance remain unclear, the surge marks a positive start for the year for the firm’s macro-focused strategy.

In comparison, last year, Pure Alpha experienced a more modest rise of 11.3%, driven by a mix of global economic events. In January, the tech sector faced a significant blow when Chinese AI startup DeepSeek claimed its model was either on par with or surpassed U.S. leaders like Nvidia at a fraction of the cost. This revelation caused Nvidia’s stock to plunge by 17%, contributing to broader sell-offs in the AI space.

Additionally, January saw market turbulence spurred by U.S. President Donald Trump’s tariff threats on Canada, Mexico, and China, which added to the uncertain economic backdrop. Although Trump later suspended tariffs on Mexico and Canada, the trade dispute with China remained unresolved, adding further pressure on global markets.

Despite these challenges, U.S. stock indices ended January in the positive, with the S&P 500 rising by 2.7%, the Nasdaq Composite up by 1.64%, and the Dow Jones Industrial Average gaining 4.7%. Bridgewater’s strong performance during this volatile period underscores the fund’s ability to navigate market challenges effectively.

Karen Karniol-Tambour, co-chief investment officer at Bridgewater, advised investors at a conference in Miami to diversify away from U.S. equities and increase their bond holdings to hedge against potential growth slowdowns. She highlighted that the bar for continued U.S. equity outperformance had risen significantly after a period of extraordinary gains.