Now what?

By Carmel Crimmins, Reuters Econ World podcast host

Hello there,

Three judges at the little-known United States Court of International Trade have thrown a spanner in the works of U.S. President Donald Trump's April 2 tariffs. They ruled that they are "invalid as contrary to law". Cue a rally in global stock markets and a boost for the dollar.

Most equity markets are already back above water following "Liberation Day" but where they go from here is anyone's guess. The White House has said it will appeal the decision and the prospect of a prolonged legal battle could put businesses off investment decisions that would put a dampener on economic activity. Before the court ruling came out, a Reuters poll had the S&P 500 finishing this year nearly even with 2024.

Elon Musk is leaving the Trump administration. His "off-boarding will begin tonight," a White House official told Reuters late on Wednesday. While the precise circumstances of his exit were not immediately clear, Musk leaves a day after criticizing Trump's marquee tax bill, calling it too expensive and a measure that would undermine his work with the U.S. DOGE Service.

It's unclear what Musk's departure means for DOGE and efforts to cut spending. On the campaign trail, the billionaire had said DOGE would be able to cut at least $2 trillion in federal expenditure. It currently estimates its efforts have saved $175 billion so far, a figure Reuters was not able to independently verify.

Meanwhile, Trump's budget bill is working its way through the Senate, where there are concerns that spending cuts will get whittled down and stimulus will be added, worsening the deficit outlook.

Nvidia has soothed investor concerns about a slowdown in growth from China. The company expects $45 billion in sales in the second fiscal quarter, which runs through July, despite U.S.-China tensions. But CEO Jensen Huang did criticise what export curbs mean for the U.S.'s role in the global AI race. It's a topic I get into on this week's episode of Reuters Econ World. The pod looks at the race for robot supremacy between the U.S. and China. Listen here.

The race to develop AI technologies is accelerating in the Gulf. Chinese robotaxi companies are expanding in the region, where cities like Dubai and Abu Dhabi are embracing the technology.  Worried about worsening traffic congestion and a shortage of taxi and ride-hailing services that largely rely on migrant workers for their drivers, Dubai has set a goal of having 25% of its daily transportation be smart and driverless by 2030. Abu Dhabi's target is 25% of total trips by 2040 while Saudi Arabia is aiming for 15% by 2030.

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The Trump administration says it will start "aggressively" revoking visas of Chinese students.The move could disrupt a major source of income for American schools and a crucial pipeline of talent for U.S. technology companies. International students - India and China together accounting for 54% of them - contributed more than $50 billion to the U.S. economy in 2023, according to the U.S. Department of Commerce.

" The factory of the world is getting more costly for the factory of the world to employ human workers. So, humanoids are seen as a possible solution to that."

Brenda Goh, Reuters bureau chief in Shanghai on Reuters Econ World podcast.

On this week's show, we go deep on the race for robot supremacy between the United States and China. Listen here. 

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