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China this morning confirmed it is raising U.S. import tariffs from 84% to 125%, taking effect tomorrow, saying further countermeasures will be applied if the U.S. continues its “unilateral bullying.” This comes after the Trump administration yesterday clarified China faces a 145% tariff rate, not 125%, causing U.S. markets to fall.

• “Uncertainty is a big issue because the 145% rate could be a different number tomorrow”: Melissa Brown, a managing director at SimCorp, outlined how the constant narrative changes make it difficult to get a gauge on the short-term market direction.
• “Worrying about the state of the market is a worthless exercise”: Fool analyst Tim Beyers states he’s focused on “not [trying] to optimize for today, but to instead consider whether I own the right stocks for the next five or more years … I'm not thinking of exiting any positions entirely, but I may trim and reallocate … Evaluating where you are against where you want to be is a worthy exercise that I believe most Fools should repeat regularly.”

Alphabet (NASDAQ:GOOG) signed a deal with the U.S. General Services Administration to cut the prices of its business software by 71% for federal agencies, in a move to take advantage of the more price-conscious public sector. The hope is that some business can be done to win away market share from Microsoft (NASDAQ:MSFT), which currently is the government’s favored enterprise software provider.

• “Lower costs and better performance can go hand-in-hand”: CEO of Google Public Sector Karen Dahut talked up the offering, with the discounts available until the end of September.
• Internal cost-cutting: Hundreds of Google employees were laid off in divisions including Android software, Pixel phones, and Chrome browser units. This follows a continued efficiency drive and multiple teams have been combined together.

Stellantis (NYSE:STLA) released Q1 shipments ahead of the market opening, with the 1.2 million vehicles notching a 9% decline versus the same period last year. The largest decline was a 20% shipment fall in North America, but this was partly put down to extended holiday downtime in January.

• The U.S. is the third largest vehicle exporter to China: Data from the China Automobile Dealer Association showed U.S. vehicle exports to the country fell by 13% to 109,000 units in 2024, with new tariffs providing a tougher backdrop for the Detroit Big 3 to do business in 2025.
• Trade policy impacts : New orders for imported Tesla (NASDAQ:TSLA) Model S and Model X vehicles have been removed from the Chinese company website, indicating headaches caused by the 84% levy imposed in retaliation for the initial U.S. tariffs.

Under the Radar

Robert Brokamp, CFP

"The key to being a long-term investor, and riding out short-term volatility, is appreciating how long the long term can be. As I wrote in February, most financial planners recommend that you plan to live until your mid-90s. So, even if you’re close to or in retirement, there’s a portion of your portfolio that you won’t touch for another decade or two or three. Protect the money you need in the short term, but take heart in the fact that the market has posted a positive return in 88% of five-year holding periods, 94% of 10-year holding periods, and 100% of 16-year holding periods."

Intellectual property (IP) is a media company's most valuable intangible asset -- think brands like Star Trek, James Bond, or Harry Potter. Yet increased content competition makes it more challenging for any brand to pass the 'Snap Test' – if we snapped our fingers and this brand disappeared, would anyone notice?

What one piece of media IP, if it disappeared, do you think the world would surely notice? Debate with friends and family, or become a member to hear what your fellow Fools are saying!