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Hello, N2K’ers!

This week, our world-famous News Haiku™ competition theme is that the U.S. Air Force is eyeing the purchase of Tesla Cybertrucks — in order to blow them up. Send me a haiku on the subject by Thursday at noon ET right here. Winner gets glory — lots of glory, and a GIF!

Here’s John Gleber’s effort from yesterday:

Nice. Now let’s talk about the news you Need2Know?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• President Trump warns of 'Great Depression' if tar …

• Are we near the edge of a credit card cliff?

• NVIDIA claps back at China’s chip security claims

• 'Weapons' dominates the weekend box office

• Delta plane wing clips empty aircraft during pushb …

• Poll of the Day: Great depression?

What’s the stock market up to, eh?

$SPX ( ▲ 0.53% ) $DJI ( ▲ 1.03% ) $NDX ( ▲ 0.56% )

Companies mentioned in today’s newsletter

$DAL ( ▲ 8.32% )  $RATE ( ▲ 0.1% )  $DIS ( ▲ 1.28% )  $NVDA ( ▼ 0.23% )  $WBD ( ▲ 2.51% )  

President Trump warns of 'Great Depression' if tariffs overturned

Get ready to eat pigeons. President Donald Trump has claimed that overturning his tariffs could lead to a Great Depression reminiscent of 1929. In a post on Truth Social, Trump warned that a judicial ruling against his emergency powers to impose tariffs would undermine the economic gains achieved during his presidency.

The tariffs generate about $70 billion to $80 billion annually right now. But experts dispute Trump’s claims about their economic benefits. Gregory Daco, chief economist at EY-Parthenon, told CNN, “The impact of these tariffs has been vastly overstated.” He pointed out that tariff revenues are inconsequential compared to the government’s staggering $7 trillion annual expenditures.

The U.S. Court of International Trade previously ruled that Trump overstepped his legal authority with many tariffs. Now the decision rests with the U.S. Court of Appeals for the Federal Circuit, where skepticism surrounding Trump’s arguments has already emerged.

Market strategist Art Hogan criticized the tariffs, calling them a “shadow tax” that slowed economic growth. He further noted that, contrary to Trump’s claims, “The stock market typically recovers when tariff frameworks are relaxed.”

While Trump warns of economic catastrophe, many experts see it differently — arguing that reducing tariffs could slash costs for businesses and consumers, potentially spurring economic growth instead.

Song of the day: Gordi, ‘Cutting Room Floor’

Last night I woke up on the cutting room floor. That’s how Gordi’s new song opens, juxtaposing its upbeat, cheerful indie rhythm with poignant lyrics delving into the pain of lost love, creating a bittersweet atmosphere as it dances through the nuances of heartache. Emotional depth and listenable melody? Well, then, okay. I like both of those things.

Are we near the edge of a credit card cliff?

U.S. consumers currently owe about $1.2 trillion in credit card debt, just shy of an overall record. While this figure sounds “shocking,” Ted Rossman, senior industry analyst at Bankrate $RATE ( ▲ 0.1% ) , cautions that "it's not all bad" since "just over half of cardholders typically pay in full every month." For them, higher balances can actually signal "economic growth."

However, the "46% who are carrying debt from month to month" face a "worrisome" situation, with average interest rates around 20%. Rossman highlights growing economic inequality. “If you have a good income, if you have a good credit score, things are good. The cutbacks are more for people with lower incomes and lower credit scores." This has created "the proverbial tale of two cities" in the credit card market: "transactors who pay in full and love their rewards" and "revolvers that are carrying really expensive debt."

The rapid rise in credit card balances, nearly 60% higher than early 2021, is steep. Rossman advises prioritizing credit card debt due to its high interest rates, making it "generally better to pay off the debt first" before investing. He recommends 0% balance transfer cards to tackle high-cost debt.

Today on the ‘gram: That’s handy!

Post of the day: Good luck with that

Quote of the Day

NVIDIA claps back at China’s chip security claims

Tensions in the global semiconductor market escalated this week as Nvidia $NVDA ( ▼ 0.23% ) fired back at accusations from Chinese state media, which labeled its H20 AI chips a national security threat.

The allegations, published on the WeChat account of Yuyuan Tantian (affiliated with Chinese state broadcaster CCTV), claimed Nvidia’s H20 chips were neither technologically advanced nor environmentally sound. The report also alleged that the chips may include a hardware “backdoor” capable of “remote shutdowns.”

In response, an Nvidia spokesperson flatly denied these claims, stating, “Cybersecurity is critically important to us. Nvidia does not have ‘backdoors’ in our chips that would give anyone a remote way to access or control them.” Nvidia has also rejected the accusation of a “kill switch,” standing firm in its defense of the H20 chips.

The controversy highlights ongoing tensions between the U.S. and China over semiconductor exports. Nvidia’s H20 chip was specifically designed for the Chinese market to comply with U.S. export restrictions on advanced AI hardware. Despite those efforts, Chinese state media has portrayed the chip as inferior and unsafe.

Nvidia CEO Jensen Huang continues to advocate for increased chip exports to China, emphasizing that Nvidia’s leadership in AI hardware is critical for maintaining U.S. dominance in the global AI market. Meanwhile Nvidia’s stock has been resilient, up 36% this year despite the geopolitical challenges.

Should you check your 401(k) today?

👍️ 

Well, alrighty then. But don’t get too excited.

'Weapons' dominates the weekend box office

You and I know Julia Garner as the young woman in “Ozark.” She was so good in that show, and it turns out she was also great in Zach Cregger's horror thriller Weapons, which stormed into theaters this past weekend, earning the top spot against Disney's $DIS ( ▲ 1.28% ) comedy sequel Freakier Friday and Marvel's The Fantastic Four: First Steps.

Weapons debuted with a $42.5 million domestic opening from 3,202 theaters, supplemented by $27.5 million internationally, for a global total of $70 million. Premium formats like IMAX also brought in $8.1 million globally, demonstrating the film's strong visual draw. According to CinemaScore, audiences gave the Warner Bros $WBD ( ▲ 2.51% ) horror flick an A-.

Trailing behind, Disney’s Freakier Friday opened to a solid $44.5 million globally, bolstered by $29 million domestic. The sequel to the 2003 hit Freaky Friday benefitted from nostalgia, with Lindsay Lohan and Jamie Lee Curtis returning to their iconic roles.

Meanwhile, in its third weekend, The Fantastic Four: First Steps saw a sharp 59.9% decline, earning $15.5 million domestically. Despite this, the Marvel film has grossed an impressive $434.2 million worldwide.

Delta plane wing clips empty aircraft during pushback

A Delta $DAL ( ▲ 8.32% ) Air Lines flight scheduled to travel from Atlanta to Guatemala City encountered an unexpected delay on Sunday morning when its wing clipped another empty aircraft during pushback from the gate.

The flight, which had 192 passengers, two pilots, and four flight attendants on board, was forced to halt operations following the minor collision. Passengers were transferred to another aircraft.

Delta, headquartered in Atlanta, did not provide additional information regarding the cause of the incident or the extent of the damage. While incidents like these are rare, they emphasize the importance of never getting on a plane if you can help it, if you ask me.

Poll of the Day: Great depression?

Poll of the Day: You’re divided on this one

We asked: Do you think Intel's CEO will survive the attacks from the administration?

You answered:

🟨🟨🟨🟨🟨🟨 No, I think he'll have to resign. (268 votes)

🟩🟩🟩🟩🟩🟩 Yes. I think he'll stay in his post. (275 votes) 

543 Votes

via @beehiiv polls